Annual urban headline inflation slowed down again in November for the second consecutive month
Despite the unfavorable base-year effect, urban headline inflation slowed to +5.6% y/y in November (vs. +6.2% y/y in October 2021), slightly lower than our expectation of +5.8% y/y. The slowdown was mainly attributed to the fall in food basket inflation to +8.1% y/y (vs. +11.6% y/y in October) on a significant decline in vegetable inflation to -12.3% y/y (vs. +21.4% y/y). Meanwhile, most of the other food basket components’ inflation remained on an upward trajectory, except for a slower fall in meat and poultry inflation, which eased to +14% y/y (vs. +15.6% y/y). Moreover, non-food inflation reversed its disinflation trend over the last three month and increased to +4.3% y/y in November (vs. +3.8% y/y in October).
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Mona Bedeir
Chief Economist
T +202 3300 5722