Egypt inflation falls to 8.5pc in August

Egypt’s urban consumer inflation was 8.5 per cent in the 12 months to August, down from 10.4 per cent in July, figures on the state statistics agency website showed on on Saturday.

The country’s economy had been growing strongly before an uprising erupted in January and toppled President Hosni Mubarak on February 11, sending investors and tourists packing.

But economists say economic activity has been improving since then.

Egypt’s planning minister said on Thursday she expected an economic growth rate of 3 to 3.5 per cent in the current fiscal year 2011-2012.

‘We are always optimistic when we put expectations and we hope that the developments undergone in this quarter will continue and reflect positively on the coming year,’ Planning Minister Fayza Mohamed Aboulnaga told a news conference.

-Reuters