In July, Egypt’s urban inflation accelerates to 33.0%

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Egypt’s annualised urban consumer price inflation soared in July to 33.0 percent from 29.8 percent in June, the official statistics agency CAPMAS said Thursday, its second highest rate on record.

Egypt raised fuel prices by up to 50 percent in July to help meet the terms of a $12 billion loan deal with the International Monetary Fund, which includes tax increases and subsidy cuts.

Import-dependent Egypt has been hit by soaring inflation since it floated its currency in November as part of the IMF deal, which led to the pound roughly halving in value.

The central bank raised its key interest rates by 200 basis points last month, seeking to ease the inflationary pressure.

Sharply rising prices present a challenge for President Abdel Fattah al-Sisi and his government, which have pledged to push ahead with politically sensitive austerity measures.

Source: Reuters