Sluggish economy cuts Egypt urban inflation to 6.2 pct

Headline inflation dipped in September, figures show, as country struggled to overcome a troubled economy Egypt’s urban headline inflation rate eased to 6.2 per cent in the 12 months to September 2012, official data showed on Wednesday, suggesting economic activity remains sluggish despite government efforts to boost confidence. Local prices rose 6.4 per cent in the 12 months to August. "Egypt’s headline inflation continues to slow down despite a pick-up in food inflation, suggesting that domestic activity remains slow," said a note from Cairo-based investment bank Beltone Financial. Figures from state statistics agency CAPMAS showed Egypt's food inflation at an annual 9.3 per cent in September, up from 8.2 per cent the month before, reflecting an upswing in global food prices. Beltone Financial predict that inflation will begin a steady rise until the end of the year, prompted by the arrival of overseas financial aid and a revival of consumer confidence. From ahramonline