Inflation data released by CAPMAS this morning showed that annual urban inflation eased relatively from 14.2% y/y in March to 13.0% in April. Meanwhile, monthly urban inflation decelerated from 0.8% m/m in March to 0.5% in April. Total republic’s inflation showed the same pattern, with annual inflation down from 13.8% y/y in March to 12.5% in April, and monthly inflation down from 0.9% m/m in March to 0.4% in April. Overall, inflation figures were driven by fruits and vegetables with relatively high increases on both annual and monthly basis. Looking at current and expected inflation pattern, we do not expect a move in interest rates any time soon.

For more details, please read the full report below.