The Clap
CAPMAS recorded annual urban consumer price inflation of 10.5% for March 2022, the highest in almost three years.
The Deets
The figure was greater than expected forecasts and above the CBE’s target of 5-9%.
The main driver
The main driver is the hiking prices of the food & beverage basket, which recorded a 4.5% increase compared to the month before.
Prices of bread were raised in March after wheat prices soared amid The Russian-Ukrainian tension.
The rise in inflation comes even when vegetable prices declined on a monthly basis by 2.9%.
Why this matters
February 2022 urban inflation was already close to exceeding the CBE’s target range. Now that it has passed, analysts expect it to continue rising before it starts decreasing again.
