UPDATE 1-Egypt's headline inflation slowed to 32.5% in April

Egypt's annual urban consumer price inflation rate decreased to 32.5% in April from 33.3% in March, slowing slightly more than analysts had expected, data from the country's statistics agency CAPMAS showed on Thursday. Month-on-month, prices rose by 1.1% in April, up from 1.0% in March.

Egypt's annual urban consumer price inflation rate decreased to 32.5% in April from 33.3% in March, slowing slightly more than analysts had expected, data from the country's statistics agency CAPMAS showed on Thursday.

Month-on-month, prices rose by 1.1% in April, up from 1.0% in March. Food prices declined in April by 0.9%, though they were 40.5% higher than a year ago. A poll of 17 analysts had expected annual inflation to dip to a median 32.8%, continuing a slowing trend that started in September, when inflation reached a peak of 38.0%.

The central bank has tightened its monetary policy, hiking interest rates by 600 basis on March 6, the same day it signed a $8 billion financial support package with the International Monetary Fund and let the currency plummet. Egypt promised the IMF in the March agreement it would resume tightening if necessary to prevent further erosion of the purchasing power of households.

The government last month also increased the price of a range of petrol, diesel and other fuels, part of a commitment made to the IMF. Inflation has been elevated for the past year, driven largely by rapid growth in the money supply.