Egypt June Inflation at Two-Year High on Food

Egypt’s inflation accelerated to 9.8 percent, the most in two years, a jump that threatens to further complicate President Adli Mansour’s efforts to revive the economy and avert more bloodshed after the ouster of Mohamed Morsi.

Inflation increased from 8.2 percent in May and was its highest since July 2011’s 10.4 percent. Consumer prices rose 0.9 percent from the previous month.

The food and beverage sub-index jumped 12.7 percent from the year-ago month. Rising food prices are pressuring the interim government as it seeks to conclude a long-stalled $4.8 billion International Monetary Fund loan.

Hundreds of thousands of Egyptians took to the streets in June to protest Morsi’s rule, spurring army generals to oust him on July 3. Hazem El-Beblawi was appointed interim prime minister yesterday.

Source:Bloomberg