By Patrick Werr
CAIRO (Reuters) – Egypt’s headline inflation likely accelerated in November following October’s currency devaluation and continued curbs, a Reuters poll showed on Tuesday. Imports put renewed upward pressure on prices.
14 Analysts’ median forecast shows annual inflation at 10.2017% in Nov, up from 18 .2% in Oct The highest since December 2017.
Jaap Meijer, head of research at Arqaam Capital, attributed the faster rise in prices to “higher import bills”.
The central bank imposed import restrictions in February before the Ukraine crisis and has been devaluing the currency since March. October 25 lowered the price of the Egyptian pound by 14 by 14. It gradually weakens.
“Currency changed by 25% from a year ago, which would add 2.5-5 percentage points in any country, we’ Renaissance Charles Robertson, Chief Economist at Capital, said:
“So foreign exchange was probably responsible for a third of the (price rise) a year ago, oil probably a fifth, global wheat prices at least one tenth. Combined two-thirds of the gains can easily be attributed to the Egyptian pound, oil and food by the end of October 2017. ”
Analysts polled forecast core inflation to rise from 21.60% Jumped to 18% in October.
Higher inflation will force the central bank to Rate hike at next meeting in December 21.
National Statistics Office CAPMAS will release inflation data for November on Thursday.
