- The national statistics agency (CAPMAS) has pegged Egypt’s Annual inflation at 10% in February 2022.The government agency attributed the upsurge in inflation to prices rise across the world due to the war in Ukraine.
The national statistics agency (CAPMAS) has pegged Egypt’s Annual inflation at 10% in February 2022.The government agency attributed the upsurge in inflation to prices rise across the world due to the war in Ukraine. Cost of food and beverages, including vegetables, fruit, bread and cereals, rose by 20.1%, since the war.
Egypt is the world’s largest wheat importer mostly sourced from Russia and Ukraine. The war has disrupted the supply. Egypt’s finance minister Mohamed Maait announced that the state’s budget for wheat purchases would go up by 865 million euros. The price of natural gas and oil has also shot up due to disruption of global supply chains.
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According to analysts, Inflation started rising in Egypt since the launch in November 2016 of a reform programme under the aegis of the International Monetary Fund (IMF).The IMF granted Cairo a loan of nearly 11 billion euros in exchange for drastic austerity measures, including a sharp devaluation and a review of the system of subsidies on essential goods. In July 2017, inflation soared to a peak of 34.2%, but by May 2019, it declined to 11%. In February last year the inflation was only 4.9%.
