The rate is higher than the 2.2 per cent previously expected by the bank, according to the official news agency Maghreb Arabe Presse.

However, it remains far lower than in many other countries around the region. Inflation in Egypt recently climbed above 20 per cent and it is in double figures across much of the Gulf region.

The rise in inflation was due to high international prices for hydrocarbons and food, according to Jouahri.

The 2.7 per cent inflation figure is lower than other, unofficial predictions. Credit ratings agency Standard & Poor's recently suggested it would rise to 5 per cent this year (MEED 11:07:08).