November’s inflation rate was the lowest in seven years according to the Central Agency for Public Mobilisation and Statistics (CAPMAS), which has announced annual inflation of 4.1 per cent in November.
The monthly inflation rate inched down 1.5 per cent month-on-month to 126.6 points, the lowest since March 2006.
Inflation was 4.3 per cent in urban areas, down 1.3 percent from October, reaching 125.6 points. In rural areas inflation was 4.0 per cent, 1.7 per cent lower than October, reaching 127.9 points.
“Inflation shrank after four consecutive months of increasing due to economic slowdown and weakened purchase power,” CAPMAS Chairman, Abu Bakr Al-Gindy, told state-run news agency MENA.
Al-Gindy said vegetable prices dropped 2.12 per cent and the price of gas went down 2.12 per cent thanks to a production increase. Other price decreases included eggs (2.5 per cent), fish (2.2 per cent) and poultry (5.1 per cent). Overall food and beverages prices dipped 2.7 per cent in November compared to the previous month, to reach 138.8 points driven by the decrease in vegetables prices.
Of goods whose prices increased, CAPMAS listed ready-to-wear clothes which rose by 3.2 per cent, lemon and bananas which increased by 46 per cent and 4.1 per cent respectively.
The culture and entertainment category saw a price increase of 5.6 percent explained by a 7.19 per cent increase in organised tours prices. The furniture, home appliances and entertainment category increased by 6.3 per cent, pushed by a 2.5 per cent increase in textile prices.
Hotels and food prices increased by 4.3 per cent, driven by fast food prices which saw a 3.3 per cent increase. Health care increased 3 per cent after a 7.1 percent hike in medical services prices.
Transportation prices rose by 7.1 per cent in November compared to the same month last year, due to a 3.2 per cent increase in transportation services prices, the miscellaneous goods and services basket witnessed an increase of 6 per cent due to a 9.1 per cent increase in gold.
