Although headline inflation remains in the double-digits, it appears that core price pressures have eased at the start of Q2, with the EGP's USD peg likely helping to contain imported inflation
Upside risks on the inflation outlook from domestic supply shocks are largely mitigated by contained imported inflation
, against the background of lower oil prices and the consequent revision in international food price forecasts," the report added.
But the dollar's surge, crimping US exports and cutting imported inflation
, could cause its policymakers to pause for thought.
In addition a strong dollar keeps imported inflation
low, benefiting domestic customers.
The strengthening of the greenback is a key factor in lowering imported inflation
which increased the purchasing power of the Saudi riyal, particularly against commodities, economists pointed out in the NCB Saudi Economic Review for January 2015.
4 pc in 2014, despite an expected drop in imported inflation
Upside risks from imported inflation
continue to be contained on the back of lower oil prices and the consequent revision in international food price forecasts," it said in a statement.
There is also less need for a strong currency to offset imported inflation
By the day, more porterios (the name given colloquially to residents of Buenos Aires) are trading in their Argentinian pesos for the stability of the US dollar, causing the Argentinian peso's value to tumble and imported inflation
to climb ever higher.
We expect imported inflation
to remain low as the dollar strengthens over the next two years, driving down prices via the pegged currency," Samba said.
The lagged effects of the lira's fall have translated into imported inflation
, as Turkish firms pay for relatively more expensive inter-mediate goods.
import prices rose more than expected in March as food costs posted their biggest gain in three years, but there was little sign of a broader acceleration in imported inflation
, the government reported Thursday.