Inflation reached high rates during the month of August, rising by 1.2 percent compared with the previous month, while annual inflation stabilized at its previous level of 6.3 percent compared with August 2011, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).

CAPMAS head Major General Abu Bakr al-Guindy told the state news agency MENA on Monday that the main factor behind last month's rise in inflation was the rise in food and drink prices, especially the price of vegetables.

Guindy added that the prices of food and drinks increased 2.4 percent in August due to the 12.2 percent increase in the prices of vegetables, including an increase of almost 20 percent for tomatoes.

Fish and seafood rose by 2.5 percent, meat and poultry by 0.1 percent, milk, cheese and eggs by about 2.1 percent and drinks by 2 percent.

Overall, food and drink prices increased by 7.8 percent compared to the same time last year.

The statistics agency head predicted that the markets would witness an increase in the demand on labor and the injection of new funds into the market, thereby increasing demands on purchasing, which could lead the monthly inflation rates to rise again — all due to the nation's current political and economic stability, and the increase of available investment opportunities. 

Egypt's inflation rate increased by 8.5 percent from January to August, compared to the same period last year. Food and drink prices increased  by 10 percent during this period, compared with the first eight months of 2011.

CAPMAS said tourist trip prices went up 4.2 percent as a result of the 1.3 percent price increase for Umra trips.

A mineral water increase of 5.26 percent caused the prices of bottled water, soda drinks and natural juices to rise by about 7 percent.

In contrast, fruit prices fell slightly by 2 percent, due to an 8.25 percent drop in lemon prices. Rice prices also fell by 0.3 percent.

The statistics showed a 7.35 percent increase in natural gas prices in August, compared with the same month last year.

Edited translation from MENA