A survey by "Reuters" indicated yesterday, Tuesday, that the inflation rate in Egyptian cities is expected to reach a new record level in August, after breaking records in June and July, due to rising prices of tobacco and cultural and entertainment services. The average forecast from 14 analysts who participated in the survey showed that the annual inflation rate for consumer prices in cities rose to 37.1 percent after hitting an all-time high of 36.5 percent in July and 35.7 percent in June. The previous highest level was recorded in July 2017 at 32.95 percent.
In an effort to contain inflationary pressures and inflation expectations, the central bank raised the overnight interest rates by 100 basis points on August 3, bringing the deposit rate to 19.25 percent. However, some analysts believe that price increases may slow down.
