Egyptian inflation ticked up again in October on the back of a further rise in food inflation. However, price pressures look set to ease next year which could bring interest rate cuts back on to the agenda, London-based Capital Economics said in a report issued on November 11.
On November 10, Egypt’s Central Agency for Public Mobilization and Statistics (CAPMAS) released its monthly report for October, which showed that urban headline consumer price index (CPI) rose by 10.4% compared to 10.1% in the same month a year earlier and by 1.1% compared to 1.6% a month earlier.
Egypt’s net foreign reserves declined by $119 million in October 2013 to a record $18.6 billion, compared with $18.709 billion in September and $18.916 billion in August, according to data published by Central Bank of Egypt on November 7.
The country’s foreign currency reserves have been pressured since the January 25 Revolution in 2011, which caused a slump in tourism activity and foreign investments, which are Egypt’s two main sources of hard currency.