Egypt’s annual urban consumer inflation increased to 5.4% in July from 4.9% in June, official statistics agency CAPMAS said on Tuesday.
Month-on-month inflation also accelerated, to 0.9% from 0.2%, the agency said.
CAPMAS attributed the hike to the increase in prices of oils and fats, meats, vegetables, housing, water, electricity, gas and fuel.
In July, Egypt raised domestic fuel prices in a quarterly review and increased power prices by an average of 15%.
“The numbers came in line with our expectations due to the increase in electricity, cigarette and transportation prices, and the increase in food consumption during the summer months,” said Radwa El-Swaify of Pharos Securities Brokerage.
“We expect inflation indicators to continue rising during August as well for the same reasons,” she added.
The Central Bank of Egypt (CBE) has set an inflation rate target of 7%, plus or minus 2 percentage points.