MACROView: Lowest annual reading in five months, but monthly figures show no changes
Egypt/ inflation may 2020 reading
Annual urban headline inflation declined in May 2020 to 4.7%, down from 5.9% in April, whereas the average price level remained stagnant on a monthly basis versus the acceleration of the prior month. On an annual basis, the softening in the headline inflation rate has been driven by a weak demand during Ramadan, coupled with the sharp fall in food prices. On an annual basis, average food prices dropped by 0.7% in May versus an increase of 1.3% in April, as most of food baskets average prices fell, including poultry, fruits, and vegetables. On a monthly basis, the significant fall in food inflation from 3.6% in April to -0.4% kept the inflation level flat without significant pressures from non-food items.
Mona Bedeir
Senior Economist
Tel.: +202 3300 5722