CAIRO: Egypt’s inflation rate dropped to the lowest level in nearly a decade last month, official figures showed on Saturday, as cheaper food offered respite to consumers squeezed by International Monetary Fund-backed reforms.

The annual inflation rate was 2.4 per cent in October, compared with 17.5pc a year earlier, the Central Agency for Public Mobilisation and Statistics (Capmas) said.

The state body said the decrease was due to a drop in the cost of household items such as food and drink.

“The increase in agricultural production led to a drop in prices of fruit and vegetables, which in turn affected food prices that make up about 40pc of consumer costs,” Cairo-based economist Iman Negm told AFP.

“The Egyptian pound’s recovery against the US dollar has also contributed to the inflation rate slowing down,” she added.

Negm expects the central bank to cut interest rates because of the weaker price pressures.

Published in Dawn, November 10th, 2019