Egypt’s headline inflation rose to a three-year high of 13.5% y/y in May as the lagged effects from the devaluation of the pound in March continued to push up non-food inflation. Inflation will continue to rise over the rest of this year and prompt the central bank (CBE) to hike interest rates further – we have pencilled in 150bp of hikes by the end of this year, to 12.75%, which is more than the consensus expects.
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