Disinflation continued for the second month, as food prices fell m/m and y/y. Annual urban headline declined further to 4.3% in January 2021, down from 5.4% in December 2020, to remain well below the lower band of the Central Bank of Egypt’s (CBE) target range of 7% ± 2%. The unusual fall in the January reading came to reflect the subdued demand-driven inflationary pressures and stable food prices, despite the ongoing acceleration in global food prices. On a monthly basis, inflation eased to -0.4% in January, the same decline rate seen in monthly prices in December.
Mona Bedeir
Senior Economist
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