Despite the announcement by Egypt’s Central Agency for Public Mobilization and Statistics (CAPMAS) of a decline in inflation during October, the rising prices of all commodities continue to be the top concern for Egyptians. Some commodities have experienced unprecedented increases, with prices rising by more than 100 percent.
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According to recent official data, annual inflation of consumer prices in Egyptian cities stood at 35.8 percent in October, down from a record 38 percent in September.
The inflation rate fell below the average forecast of 37.1 percent from a Reuters poll of 19 analysts.
On a monthly basis, the rate of price increases slowed to 1 percent in October, compared to 2 percent in September.
Since June, inflation has been on an upward trend, reaching 35.7 percent, surpassing the previous record high of 32.95 percent in July 2017.
Food and beverage prices experienced a monthly increase of 1.5 percent and an annual increase of 71.3 percent, as reported by the device.
To combat inflation, the government announced on October 10 that it had reached an agreement with private producers and retailers to reduce the prices of various essential goods by 15 to 25 percent for a six-month period. These goods include beans, lentils, dairy products, pastries, rice, sugar, chicken, and eggs.
The government recently disclosed gasoline price hikes of up to 14.3 percent due to rising global prices and a weakened exchange rate.
The Egyptian currency, officially valued at 30.85 pounds per dollar, depreciated to about 48 pounds per dollar on the parallel market following the outbreak of the Gaza crisis on October 7, down from 40 pounds.
Record levels
Ayman Soliman, CEO of the Sovereign fund of Egypt (TSFE), stated that inflation, which had reached record levels in Egypt, seemed to have peaked. He added that the depreciation of the floating currency was beneficial for controlling production costs.
Suleiman also mentioned that there was a positive absorption of assets in Egypt’s hospitality and tourism sector, an area where the government aimed to enhance private sector participation and increase revenue through the sale of state-owned assets.
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