Egypt's core inflation dips to 30.57% yr/yr in May

Egypt’s core inflation eased to 30.57 per cent in year on year in May with a sharp drop in consumer food prices, especially in urban areas.

Over the same period, annual urban consumer price inflation fell to 29.7 percent from 31.5 percent, official statistics agency CAPMAS said earlier on Thursday.

Egyptian government has put in place regulations to improve foreign investment despite an increase in domestic debt and unstable economy.

The core inflation eased to 30.57 percent in May from 32.06 percent in April as the central bank raised key interest rates by 300 basis point in a bid to make the pound stronger.

The move by the central bank helped Egypt clinch a $12 billion International Monetary Fund programme.

In April, the bank raised another 200 basis point to deal with inflation and demand side pressure as requested by the IMF.

The north African has embarked on a three year transformation programme aimed at reviving the economy that has been struggling since the 2011 revolution.

President Abdel Fattah al-Sisi is under increasing pressure to revive the economy, keep prices under control and create jobs.