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CAIRO, Feb 10 (Reuters) - Egypt's annual urban consumer inflation fell to 10.1 percent in January from 11.1 percent the previous month, the statistics agency CAMPAS said on Wednesday, after the country raised interest rates and moved to control prices of essential food.
The central bank raised interest rates by 50 basis points in December, citing inflationary pressure. In November, Egypt's government said it would control prices of 10 essential goods, and the army rolled out trucks to distribute subsidised food.
Core inflation, which excludes items such as fruit and vegetables whose prices fluctuate widely, rose to 7.73 percent in January from 7.23 percent in December, the central bank said.
Neither the central bank nor CAMPAS gave an immediate explanation for the changes. Economists said consumer inflation was down because food and drink prices had declined.
Egypt has been facing mounting pressure to devalue its currency since a popular uprising in 2011 drove away tourists and foreign investors - key sources of foreign exchange in a country that relies heavily on imports of food and energy.
But the central bank is reluctant to devalue for fear of sparking more inflation or downward pressure on the currency. It has been rationing dollars as its foreign exchange reserves have dwindled.
(Reporting by Lin Noueihed; editing by Larry King) ((lin.noueihed@thomsonreuters.com; +202 2 394 8039; Reuters Messaging: lin.noueihed.thomsonreuters.com@reuters.net))
Keywords: EGYPT INFLATION/URBAN
