Inflation falls for the second month as the decline of effects of added value

“Inflation continued to drop for the second month after a significant increase following the introduction of value added tax,” Economic Expert, Reda Mosallam, general manager of Truth, Economic & Management Consultancy.

He added that the decline in rental values in the item of housing, electricity and water contributed significantly to the decline in inflation rates, especially as they constitute about one third of consumer spending, while pointing to the success of VAT in contributing to rationalization of spending and purchase of essential supplies only.

He predicted a further drop in inflation in the coming months as tax effects eased especially in Ramadan and summer holidays, which would contribute significantly to the decline in prices.

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