“The recent subsidy cuts will cause inflation to rise a bit further in the next few months. Data released revealed that the headline inflation rate –which covers urban consumers only –rose from 29.7% y/y in May to 29.8% y/y in June. “We estimate that these will add 1.5%-pts to the headline inflation rate. “As the effects of last year’s drop in the pound start to unwind, inflation looks set to fall back sharply towards the end of 2017. Meanwhile, a separate note issued by Beltone Financial didn’t expect that Central Bank last decision to raise interest rate could lower inflation.

Source: Daily News Egypt July 12, 2017 06:33 UTC