The CBE stated that the monthly core inflation rate reached 0.8 percent in January, compared to 0.5 percent in the same month of last year, and compared to 0.2 percent in December 2021.
The Central Agency for Public Mobilization and Statistics announced on Thursday, that the annual inflation rate for the whole country increased during January for the second month in a row, reaching eight percent compared to 6.5 percent in December, and the annual inflation rate in urban areas rose to 7.3 percent in January, compared to 5.9 percent in December.
The monthly inflation rate for the whole country was eight percent in January, compared to a negative 0.2 percent in December.
The monthly inflation rate in urban areas was 0.9 percent, and in the countryside by 1.2 percent during last January.
Despite the rise in the annual inflation rate, it is still within the target range set by the CBE at the level of eight percent (with an increase or decrease of two percent) on average during the fourth quarter of 2022.
The banking expert Mohamed Abdel-Aal said that despite the rise in inflation, it is still at a single digit under 9 percent, which is the maximum target from the CBE.
Abdel-Aal explained that the repercussions of rising US inflation will reflect on the emerging markets, including Egypt, with the start of the Federal Reserve’s trend after the second quarter of this year, reducing its effects on Egypt.
The CBE kept the interest rate at the Monetary Policy Committee’s meeting in February, for the tenth time in a row over the past 14 months.
He added that raising the interest rate leads to an increase in prices directly in the market as a result of its entry into the cost of goods, which leads to a rise in inflation again, and an increase in the cost of lending in the state’s general budget, and creating pressures on banks’ profits.