Egypt's inflation drops as economic reforms take effect

AP News
Posted: Jan 10, 2018 9:11 AM

CAIRO (AP) — Egypt says inflation has dropped to 21.9 percent in December, down from nearly 26 percent the month before.

The figures were published by the Central Agency for Public Mobilization and Statistics on Wednesday.

Dubai-based Arqaam Capital says the decline reflects the "strong positive base effect" following the November 2016 currency float, part of broader economic reforms taken to meet demands by the International Monetary Fund for a $12 billion bailout loan. It expects inflation to decline to 18 percent in January.

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The floatation caused prices to surge, hitting poor and middle class Egyptians especially hard.

Inflation hovered around 30 percent throughout 2017. Egypt expects inflation to drop to around 13 percent in 2018.