Egypt inflation jumps to five-year high of 18.7% in November

CAIRO (Reuters) -Egypt’s annual urban consumer inflation rate surged to a five-year high of 18.7% in November, closely matching analyst expectations, data from the statistics agency CAPMAS showed on Thursday.

The inflation figure, up from 16.2% in October, was the highest since December 2017, when it hit 21.9%. The price rises followed a currency devaluation in October and continued restrictions on imports.

The median forecast in a Reuters poll of 14 economists had expected inflation of 18.75%. Six economists also forecast that core inflation, due out later on Thursday, would come in at a median 21.6%.

The increase reflected a continued jump in month-on-month inflation, with prices rising 2.3% compared to 2.6% in October, Naeem Brokerage said in a note.

The monthly increase was “as driven by higher production costs, amid a weakening Egyptian Pound, in addition to supply shortages,” Naeem wrote.

(Reporting by Mahmoud Salama and Patrick Werr; Writing by Lina Najem; Editing by Christian Schmollinger and Raissa Kasolowsky)