Cairo - Mubasher: Capital Economics expects inflation to fall further in Egypt over the coming months as the effects of the food price spike continue to unwind and underlying inflation stays weak.

The research firm maintains its long-held view that Egyptian inflation will ultimately fall by more than most anticipate over the next couple of years.

Egyptian inflation dropped back in November and it is expected to fall further over the coming months.

The Central Bank of Egypt (CBE) is likely to keep interest rates unchanged at its meeting later this month, but will resume its easing cycle in early 2019.