Egypt’s inflation to rebound to 12-13% in six months: minister

Egypt’s inflation is expected to rebound between 12 and 13 percent in a period of six and nine months, finance minister Amr el-Garhy said in a telephone interview with private television channel CBC on Wednesday.

Egypt’s key inflation rates soared to multi-decade highs in June on the back of energy subsidy cuts agreed with the International Monetary Fund as a condition of its $12 billion three-year loan.

Annual urban inflation for July hit a critical high of 33.0 percent from 29.8 percent in June, the highest since June 1986, and the second highest since Reuters data began in 1958.

Egypt will not increase prices on fuel products during the current financial year that began in July, el-Garhy asserted in previous statement

In a review of Egypt’s IMF loan programme, the Fund said on Tuesday that reforms were on track but that it had granted waivers for certain targets in June, including for the country’s fuel subsidy bill.