Egyptian inflation rates ease to lowest levels in almost 2 years

CAIRO, April 10 (Xinhua) -- Egypt's annual urban consumer price inflation dropped from 14.4 percent in February to 13.3 percent in March, the country's official statistics authority said in a statement on Tuesday.

It is lowest levels in almost two years according to the Central Agency for Public Mobilization and Statistics (CAPMAS) report.

Core inflation fell to 11.59 percent year-on-year in March from 11.88 percent in February, its lowest rate since April 2016, the central bank said on Tuesday.

The country's annual inflation was highest in July 2017 when it reached 35 percent due to fuel and energy subsidy cuts and relevant price hikes.

The inflation gradually declined over the past few months until it reached 17.1 percent in January 2018 compared to the same month last year.

Egypt's foreign currency reserves exceeded 38.2 billion dollars by the end of January, the highest since the uprising that ousted former President Hosni Mubarak in January 2011 when it stood at 36 billion dollars.

Egypt has been facing economic recession over the past few years due to political turmoil and relevant security issues, which led to declining tourism and foreign investments amid growing budget deficit, inflation rate and foreign and domestic debts.

To face economic challenges, Egypt started in late 2016 a three-year reform program including subsidy cuts, tax hikes and full floatation of the local currency.

Egypt's economic reform program is encouraged by a 12-billion-dollar loan from the International Monetary Fund, half of which has already been delivered to the most populous Arab and North African country. Enditem