CAIRO, Aug 10 (Aswat Masriya) - Egypt's annual consumer inflation rate dropped in July to 8.3 percent year-on-year, the state's statistics agency said in a report issued on Monday. 

This is a drop from the yearly inflation rate in June, 11.5 percent and is significantly lower than the 13.5 percent recorded in May. 

Despite the year-on-year drop, inflation rose in July by 0.6 percent, compared to June, according to the monthly report released by the Central Agency for Public Mobilisation and Statistics. 

The core annual inflation meanwhile dropped to 6.49 percent in July, as opposed to 8.07 percent year on year in June, reported the central bank on Monday.

Inflation surged last summer after the government reduced petroleum subsidies and introduced new taxes in July 2014, hiking fuel prices by up to 78 percent.

The Egyptian government expects to bring inflation rates to between 7 and 8 percent, by the fiscal year, 2018/2019.

CORRECTED - The story had stated that the annual inflation rate is the lowest since November. This has been removed from the story.