Egypt’s urban inflation rose sharply to 35.7% YoY in June, up from 32.7% in May, mainly driven by a significant 65.9% rise in food prices and a low base effect from last year. Monthly inflation, however, dropped to 2.1% in June from 2.7% in May. Core inflation hit 41% in June, a slight rise from 40.3% in May. It’s believed that Egyptian authorities are building a foreign-currency buffer in preparation for a potential devaluation. A recent Goldman Sachs report suggests potential easing inflationary pressures, indicating that headline inflation might have peaked.