Inflation Drops On Lower Prices Of Fresh Vegetables, Gas Cylinders

The annual core inflation dropped to 4.25 percent in November from 6.70 percent in October. The Central Bank of Egypt said the negative monthly inflation rate was largely driven by the sharp decline in prices of fresh vegetables, as well as lower prices of butane gas cylinders along with moderate declines in select food items.

Prices of fresh vegetables continued to fall in November for the second consecutive month, recording a 12.83 percent (m/m) decline following a 9.18 percent decrease in October. This marks the sharpest monthly decline since December 2010, contributing by negative 1.06 percentage points to monthly headline inflation.

Regulated prices declined by 0.91 percent (m/m) in November to contribute by negative 0.17 percentage points to monthly headline inflation. The monthly development came solely on the back of a 14.06 percent (m/m) decrease in the prices of butane gas cylinders.

Poultry prices declined by 2.64 percent (m/m) to contribute by negative 0.11 percentage points to monthly headline inflation in November following an increase of 4.90 percent (m/m) in the previous month. In the meantime, red meat prices remained unchanged in November after increasing by 2.73 percent in October.

The prices of fresh fruits increased by 4.45 percent (m/m) in November after remaining broadly unchanged in the previous month.