Egypt's December inflation accelerates to annual 21.3%

Egyptian annual urban consumer inflation in December rose to 21.3% from 18.7% in November, exceeding analyst expectations, data from the statistics agency CAPMAS showed on Tuesday.

The inflation figure was the highest since December 2017, when it hit 21.9%. The price rises followed a currency devaluation in October and restrictions on imports.

The central bank allowed the Egyptian pound to depreciate by about 14.5% on Oct. 27 and let its value continue to weaken slowly and incrementally in November and December. This goes somewhat towards absorbing a 25% devaluation in late October but portends more inflation to come, Sandeep said.

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