Tuesday , October 4 2022

Inflation in Egypt is rising to 17.5%


According to data from the Central Organization for Mobilization and Treasury Statistics (CAPMAS), the annual rate of inflation was 17.5% in October of this year, compared with 15.4% in the previous month, exceeding the Central Bank's target in 16%.

The Central Bank said on Saturday that inflation rose by 14.4% between January and October 2018, compared with the 2017 period.

"The figures are much higher than expected and the prices of vegetables and fruits are the main reason," said Pharos Radwa Suweifi, head of research at Pharos investment bank.

"Interest rates are expected to stabilize at the central bank meeting next Thursday, but after the unexpected rise in inflation, we do not exclude interest rates rising between 1% and 2%," the delegation said.

Government decisions
The central bank said earlier that domestic and external risks threaten the outlook for consumer prices (inflation) in the country, linked to expected increases in fuel prices and rising global interest rates.

Inflation in Egypt is rising since the liberalization of the pound exchange rate in November 2016.

Egyptians, millions of whom live below the poverty line, complain about difficulties in meeting basic needs after successive leaps in fuel, drug and transport prices.

In May, metro prices in the capital of Cairo rose by 50% to 150% and 250%.

In June, the government raised the drinking water price for home use for the second time in less than a year by 44.4%.

The government increased the prices of household electricity consumption segments by 69.2% and increased fuel prices by 66.6%.

In July, the Egyptian government decided to increase the price of domestic gas and commercial activity by 75% since August.

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