Egypt/ Inflation July 2020 readin
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Annual urban headline inflation rate eased in July 2020 to 4.2%, up from 5.6% in May. In line with our expectation, the favorable base year effect drove annual inflation to fall to its lowest level since November 2019. We note that July reading came slightly below our expectation of 4.6-4.8% as it was driven by non-food prices, while food basket prices declined by 1.5%. The prices of the most food basket items weakened in July, including fruit, vegetables, poultry, and fish. Non-food inflation fell to 7%, down from 8% in June—the lowest in 10 months.
Mona Bedeir
Senior Economist
Tel.: +202 3300 5722