CAIRO: Urban consumer inflation in Egypt accelerated in the year to March to an 11-month high, pushed up by soaring food prices that contributed to the mass protests that toppled President Hosni Mubarak. Urban consumer inflation in Egypt rose to 11.5 percent in the 12 months to March, its highest level since April 2010, up from 10.7 percent in February. On a monthly basis, it increased to 1.4 percent in March from 0.1 percent in February. Inflation in urban food and beverage prices, which account for 44 percent of the weighting of the basket Egypt uses to measure inflation, soared to 20.5 percent in the year to March, up from 18.2 percent in February. Egypt, which relies on imports for at least half of its domestic consumption, is likely to suffer further food price inflation after the UN Food and Agriculture Organization said global food prices could rebound as demand grows and supplies tighten. Investment bank CI Capital said it forecast that urban inflation would average 12.8 percent in 2011. Several economists had expected an increase in the rate – the most closely watched indicator of prices – as a result of a weaker pound and imported inflation.
