Egypt’s annual inflation fell to 17.1% in January from 21.9% in December, achieving its lowest levels since the floatation of the Egyptian pound in November 2016, Invest-Gate reports.

The core inflation dropped to 14.35% from 19.86% in December. Food prices also fell 0.5% month-on-month, while they increased 16.6% year-on-year, according to the state statistics body CAPMAS.

Inflation has increased in Egypt since the currency was floated in November 2016, reaching its highest level in July 2016 of around 35% on the back of the second phase of energy subsidy cuts as part of Egypt’s reform plan to secure a USD 12 bn International Monetary Fund (IMF) deal to revive its economy. Inflation then gradually decreased as inflationary pressure was eased.

Finance Minister Amr El-Garhy recently told the press that he expects the rate to fall to 10-13% by the end of 2018. Likewise, the IMF said in a report last month that it expects inflation to drop to 12% by June and to single digits by 2019.