Egypt’s annual core inflation down to 8.5%: CBE

Egypt’s annual core inflation rate witnessed a decrease from 10.9 percent in June to 8.45 percent in July, according to the Central Bank of Egypt (CBE).

In a report, the CBE claimed that the inflation was free of any “volatile elements”.

Similarly, the Central Agency for Public Mobilization and Statistics (CAPMAS) declared on Thursday that inflation declined to 13 percent in July 2018, compared to 34.3 percent in July 2017.

However, CAPMAS continued, inflation in July increased by 2.5 percent compared to June.

Egypt has been struggling with inflation since it floated of the pound in 2016, as part of its IMF program recommendations to save its frailing economy.

The following year, Egypt slashed parts of its energy subsidies, resulting in a 60 percent surge in fuel prices.

The IMF reforms include a raft of measures such as devaluation, loosening capital controls, ending energy subsidies, reforming public enterprises and overhauling monetary policy – all in a bid to restore economic stability and long-term growth.

IMF has since recommended that the government continue removing subsidies on fuel.

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