Arab Press

بالشعب و للشعب
Saturday, May 31, 2025

President warns of ‘difficult’ times as inflation rises in Egypt

President warns of ‘difficult’ times as inflation rises in Egypt

Prices in Egypt have risen across many sectors, from food items and medical services to housing and furniture.

Egypt continues to battle surging inflation amid a dramatic slide of its currency as many Egyptians struggle with price hikes, the country’s statistics bureau has said.

The state-run Central Agency for Public Mobilization and Statistics (CAPMAS) released figures on Tuesday showing that the annual inflation was at 21.9 percent last month, up from 19.2 percent in November. That is compared with 6.5 percent in December 2021, before inflation ballooned in 2022, following the outbreak of Russia’s war on Ukraine that rattled the world economy.

Prices in Egypt rose across many sectors, from food items and medical services to housing and furniture.

“Food and beverages were up 4.6 percent month-on-month (adding to the 4.5 percent in November), impacted mainly by bread and cereals, dairy, vegetables and meat,” said Allen Sandeep of Naeem Brokerage.


Most of Egypt’s more than 104 million population has suffered due to inflation since the government embarked on an ambitious reform programme in 2016

This goes somewhat towards absorbing a 25 percent devaluation in late October but portends more inflation to come, Sandeep said.

“Now combined monthly inflation has risen by around 7 percent over three months. This is close to a 30 percent pass through to the urban CPI index. With the new round of devaluation ongoing, which we expect to be roughly 15 percent, we can expect annual CPI to touch 25 percent by February.”

The higher inflation has inflicted heavy burdens on consumers, especially lower-income households. Nearly 30 percent of Egyptians live in poverty, according to official figures.

Most of Egypt’s more than 104 million population has suffered due to inflation since the government embarked on an ambitious reform programme in 2016 to overhaul the country’s battered economy. That programme included painful austerity measures like the flotation of the Egyptian pound and the slashing of subsidies for fuel, water and electricity.

The economy was also hit hard by the coronavirus pandemic and the fallout from the war in Ukraine. Egypt is the world’s largest wheat importer, with most of its imports having traditionally come from Eastern Europe.


‘Very difficult’


On Monday, President Abdel Fattah el-Sisi described the situation as “very difficult”, urging people to trust his administration.

The government has sought to curb state spending, halted the implementation of costly new projects that consume foreign currency, and ordered state agencies to embark on austerity measures.

Decisions in recent months by the Central Bank of Egypt (CBE) to raise its main interest rate and devalue the pound have set off an economic shock that hit millions who found their savings running low as the cost of living surged.

The measures were meant to fight increasing inflation and meet the requirements of the International Monetary Fund for a bailout loan amid a shortage of foreign currency.

Last month, CBE announced it aims to bring down inflation to about 7 percent by the fourth quarter of 2024, though it was not clear how that would happen amid the current trends.

The IMF approved the $3bn support package for Egypt after a series of reforms, including devaluation.

The US currency traded on Tuesday at 27.5 pounds for $1.





Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
Head of Gaza Aid Group Resigns Amid Humanitarian Concerns
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Netanyahu Accuses Starmer of Siding with Hamas
Calls Grow to Resume Syrian Asylum Claims in UK
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Denmark Increases Retirement Age to 70, Setting a European Precedent
Iranian Director Jafar Panahi Wins Palme d'Or at Cannes
Israeli Airstrike Kills Nine Children of Gaza Doctor
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
Mount Lewotobi Laki-Laki Erupts Again, Spewing Ash Cloud over Flores Island
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
Senate Democrats Move to Censure Trump Over Qatar Jet Gift
Hamas Releases Last Living US Hostage from Gaza Amid Ongoing Conflict
×