(Bloomberg) --

Consumer prices in urban parts of Egypt grew at the slowest annual level since November as food costs fell, according to data from the state-run statistics agency, CAPMAS.

The annual rate decelerated to 4.2% from a year earlier in July, compared with June’s 5.6%, defying some analyst expectations for a moderate acceleration. Food and beverage prices, which comprise the largest single component in the inflation basket, fell 1.5% in July.

Monthly inflation sped up in July, rising to 0.4% from 0.1% the previous month.

The annual rate remains below the lower bound of the central bank’s target range for the end of the year, set at 9% plus or minus 3 percentage points. Still, most economists surveyed by Bloomberg predict the central bank will leave interest rates on hold when its Monetary Policy Committee meets on Aug. 13.

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