Egypt May inflation seen slowing to 14.5 percent
A Reuters poll of 15 analysts suggests Egypt's annual urban consumer inflation will dip to 14.5% due to favorable base effects. Experts caution this relief will be temporary as electricity price hikes and rising food costs are projected to push inflation toward a peak of 17.5% by August.
Analysts expect Egypt urban consumer inflation to have slowed to 14.5% in May from 14.9% in April. This median forecast from 15 analysts precedes the official CAPMAS release scheduled for the morning of June 10. The anticipated dip offers temporary relief before electricity price hikes are expected to drive rates toward a 17.5% peak by August.
### Base Effects Drive Temporary Relief The expected dip to 14.5% follows a cooling trend that began in April when rates fell from a 10-month high of 15.2%. Analysts polled between June 3-8 provided a forecast range between 13.3% and 16.0%. This slowdown occurred despite persistent inflationary pressure linked to conflict in Iran.
