Egypt’s annual headline inflation rate declined in November, logging the steepest fall in three and a half years that has reversed an upward trend and recorded 15.7% from 17.7% in October, the first decline since August when it soared steadily on the back of subsidy cuts, Invest-Gate reports.

The announced annual headline inflation rate came within the Central Bank of Egypt’s (CBE) inflation projection for the fourth quarter of 2018 – a 13% with a possible 3% change in either direction, CAPMAS’ November results showed.

The November decline is the biggest since June 2015. Prices in November declined 0.8% from the previous month, after a 2.6% surge in October, despite a shortage in basic food commodities which have seen prices of some vegetables soar before authorities were able to defuse the crisis.

Meanwhile, core inflation, which strips out volatile items such as food, also dropped in November to 7.94% Y-o-Y from 8.86% in October, the CBE announced on December 10.

In October, the annual headline inflation registered 17.7%, up from 16% and 14.24% in September and August, respectively.

Inflation hit a record high of 33% in July 2017, after Egypt floated its local currency in November 2016 under its economic reform plan, which helped it secure a USD 12 bn loan facility from the International Monetary Fund (IMF).

The IMF projects Egypt’s inflation to drop to 14% in 2019, despite expected hikes in fuel prices and more subsidy cuts, pursuant to the country’s reform plan.