Annual urban headline cooled off in October compared to September, but it has to be carefully interpreted
In line with our expectations, urban headline inflation slowed to +6.2% y/y in October 2021 (vs. +6.6% y/y in September). The slowdown was mainly attributed to the favorable base-year effect that offset the seasonality surge in education and recreation and culture basket inflation with the beginning of the new school year. That said, we still see inflation expectations anchored around the CBE’s target despite growing inflationary pressures, so we expect no policy shift until end of 2021.
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Mona Bedeir
Chief Economist
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