Egypt’s Inflation Rate Drops Faster Than Expected
In a surprising turn of events, Egypt’s annual urban consumer price inflation decreased to 25.7 percent in July, surpassing analysts’ forecasts. This drop came after a rate of 27.5 percent in June, showing a faster decline than anticipated, according to the country’s statistics agency CAPMAS.
Food Prices Dip, But Still Remain High
In July, prices saw a month-on-month decrease of 0.4 percent, down from 1.6 percent in June. Despite this improvement, food prices declined by 0.3 percent in July, remaining 28.5 percent higher than a year ago.
Efforts to Stabilize Economy with Strategic Purchases
Egypt, known as one of the largest wheat importers globally, recently secured 36,600 tonnes of sunflower oil through an international tender by the state grains buyer GASC. This strategic move includes deliveries scheduled between October and November.
Focus on Wheat Imports for Economic Stability
In a bid to capitalize on lower global wheat prices, Egypt launched its largest-ever wheat tender seeking to import 3.8 million tonnes. This move aims to reduce the country’s import bill and stabilize the economy amidst financial challenges.
Monetary Policy Tightened Under IMF Support
Egypt has implemented stricter monetary policies under an $8 billion International Monetary Fund financial support package signed in March. This includes interest rate hikes and increasing domestic prices to address budget deficits and economic pressures.
Government Initiatives to Support Citizens Amid Rising Costs
The government has raised the prices of subsidized products like bread and fuel to combat budget deficits and stabilize the economy. Food subsidies reached 133 billion Egyptian pounds in 2023/24, showing a 10 percent increase year on year, reflecting efforts to support citizens facing escalating costs.