Egypt’s headline inflation rate slowed from 25.5% y/y in November to 24.1% y/y in December, its slowest pace in two years. With earlier falls in the pound falling out of the annual price comparison, we expect Egypt’s headline inflation rate to slow sharply over the coming months. This will open the door for the Central Bank of Egypt’s (CBE’s) easing cycle to kick off in April, if not at February’s MPC meeting.
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