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Egypt’s Urban Inflation Over 31%

Egypt’s Urban Inflation  Over 31% Egypt’s Urban Inflation  Over 31%

Egypt’s annual urban consumer price inflation hit a three-decade high in April, adding pressure on the government to lower prices before the holy month of Ramadan begins at the end of the month. Food demand usually grows during Ramadan because of heavy consumption following the dawn-to-dusk fasting. Ramadan begins on May 27. Annual urban inflation rose in April to 31.5% from 30.9% in March, the official statistics agency, CAPMAS, said on Wednesday. The figures are the highest since June 30, 1986, when it reached 35.1%, according to Reuters data. President Abdel Fattah al-Sisi is under increasing pressure to revive the economy, keep prices under control and create jobs to avoid a backlash from the public. Import-dependent Egypt abandoned its currency peg to the US dollar on Nov. 3, and since then the currency has depreciated roughly by half, causing prices of goods to soar. Floating the pound helped Egypt secure a $12 billion International Monetary Fund loan to support the country’s economic reforms, which include subsidy cuts and introducing a value-added tax.

 

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