Egypt’s annual inflation has registered 7.9% in August, down from 8.3% in July, the Central Agency for Public Mobilisation and Statistics (CAPMAS) said on Thursday.
Meanwhile, the Consumer Price Index (CPI) increased by 0.6% compared to July, which was attributed by CAPMAS to an increase in prices of vegetables, hotels, repairing of houses, home appliances, fruits and entertainment services.
The high rate was mainly attributed to the fact that Egypt reduced petroleum subsidies in the fiscal year (FY) 2014/2015 budget to EGP100bn, compared to EGP 134bn in FY 2013/2014.
President Abdel Fattah Al-Sisi’s government raised automotive petroleum product prices in June 2014, including fuel, diesel and natural gas, as a means to finance the growing budget deficit.
Dcode Economic and Financial Consulting Company anticipated in August that annual average inflation for the FY 2015/2016 will be 12%, whilst the Egyptian government expects the figure to reach to between 10% and 11%.