Egypt consumer prices rise at slowest pace in over two years

The annual inflation rate in urban parts of Egypt in May rose at its slowest pace in more than two years, giving the central bank some breathing room ahead of fuel subsidy cuts expected within weeks. Consumer prices were 11.4 percent higher, according to the state-run statistics agency, CAPMAS.
Prices rose 0.2 percent month-on-month, compared with 1.5 percent in April, as food and beverage costs, the largest single component in the price basket, fell 0.3 percent.
The annual rate is now near the bottom of the central bank’s target range of 13 percent.
The bank’s monetary policy committee is scheduled to meet toward the end of the month to discuss interest rates. Core inflation, the gauge measured by the central bank, was 11.09 percent in May, slowing from 11.62 percent the previous month to the lowest level since April 2016.