Egypt’s inflation surges to record 38%

Egypt’s annual urban consumer price inflation surged to a record 38 percent in September from 37.4 percent in August, according to its statistics agency CAMPAS.

Data released by the agency on Tuesday revealed that prices of food and beverages in September rose by 73.6 percent compared to the same month last year.

The annual price hike in food and beverages was spurred by a 45 percent ascent in the cereals and bread group.

On a monthly basis, food and beverage prices rose by 3.6 percent, with vegetable prices surging by 19.2 percent, fruits by 5.4 percent, dairy products by 5.4 percent and sugar items by 2.9 percent.

According to CAMPAS, the prices of beverages and tobacco grew annually by 55.1 percent in September, followed by hotels and restaurants at 43 percent and furnishing by 38.1 percent.

Prime Minister Mostafa Madbouly announced on Monday that his government has agreed with private producers and retailers to reduce prices of staple food items by 15 to 25 percent beginning Saturday.

According to Reuters, the list of subsidized food items includes fava beans, lentils and dairy products.

Cheese, pasta and rice as well as sugar, chicken and eggs are likely to see a decline in prices.

These measures are part of the government’s efforts to alleviate the economic strain on its citizens.

Furthermore, the government has pledged to closely monitor the implementation of these price reductions, although specific enforcement measures still need to be detailed.

It will also expedite customs procedures and port clearances to facilitate the process. Additionally, banks have committed to assisting food producers in obtaining foreign inputs, as said by the ministers of finance and supply.

Manufacturers, meanwhile, have complained that a lack of foreign currency has limited their ability to import, forcing them to cut back on production.

The Reuters report further said that Madbouly said that private producers had agreed to write their prices on their products and make them available in large quantities in retail chains.

In June, the World Bank revised Egypt’s projected real gross domestic product for the fiscal year 2023-2024 to 4 percent from 4.8 percent in its global economic prospects report.

Furthermore, the Egyptian Finance Ministry on Thursday noted that its currency’s depreciation against the US dollar is expected to increase the debt-to-GDP ratio to 95.6 percent for the financial year 2022-23.