World Economy

Egypt Inflation Bites

Egypt Inflation BitesEgypt Inflation Bites

The Egyptian economy is tabled for slower growth as high inflation dogs consumers, analysts said, Anadolu Agency reported. “Inflation is above peers and is forecast to remain near 10%, with structural rigidities aggravated by exchange rate depreciation,” credit ratings agency Fitch said in a recent report. Egyptians spend 40% of their income on food on average, according to a report released by the independent Egyptian Center for Economic Studies on Dec. 14. “The country is widely known to be the world’s largest importer of wheat, in an economy heavily dependent on foreign production. With the value of the Egyptian pound falling 11% since January, Egyptians have had to cough up more for foreign goods, and the market has reacted. Increasing food prices have been a key element driving annual inflation on the price of urban consumer goods up to 9.7% in October, the highest level in recent years,” according to the report. Growth is forecast at about 4% in 2015, up from 1.5% last year.