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FINANCIAL NEWS
Egypt’s inflation rises to 10.7% in June
11 Jul 2010
(MENAFN) The Egyptian government said that the country?s annual urban inflation rate edged up to 10.7 percent in June, a moderate rise that analysts do not expect will prompt the bank to raise interest rates this month, Reuters reported.
They mainly attributed the rise to an increase in prices of food and beverages, which account for more than 40 percent of the weighting of the basket Egypt uses to measure inflation.
Economists expect inflation to continue rising in July and August on the back of higher consumer spending during the summer holidays and ahead of Ramadan.
Urban inflation posted its first rise since February. Inflation was 10.5 per cent in May. It had been on a downtrend since peaking at 23.6 per cent in August 2008 but has fluctuated.
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