Egypt says inflation drops for first time in 7 months

CAIRO – Egypt’s central bank says that inflation fell to 29.7 per cent in May, down from 31.5 per cent in April, the first decline in seven months when the Egyptian pound was devalued.

The figures, published by the CBE Thursday, also show that year-on-year core inflation declined to 30.5 per cent in May, down from 32.1 per cent in April. Core inflation excludes volatile commodities such as food and energy.

Egypt floated its currency in November to meet a key demand set by the International Monetary Fund in exchange for a $12 billion loan to support the country’s ailing economy. An installment of $2.75 billion has already been paid out, while another $1.2 billion installment has met preliminary approval.