As the most populous Arab nation struggles with price increases and a weakening currency, Egypt’s annual inflation rate reached a record high in June, according to the Egyptian statistics department.
Data from the government-run Central Agency for Mobilization and Statistics show that the annual inflation rate increased to 36.8% in May from 33.7% the previous month.
Following the Russia-Ukraine war, which caused a global wave of inflation, prices in Egypt increased across a variety of sectors, including food goods, medical services, housing, and furniture.
According to the figures issued on Monday, the primary inflation-causing factors in Egypt—food and beverage prices—rose by 64.9% in June compared to the same month in 2017. Among the goods with the highest price increases were grains, meat, poultry, fish, and fruits.
Compared to June 2022 when it was 14.7%, the inflation rate last month more than doubled.
The greatest buyer of wheat in the world is Egypt, a nation of more than 105 million people. Historically, Ukraine and Russia have provided the majority of its imports.
Price increases were experienced by Egyptians even before the war as the government launched an ambitious reform program in 2016 to tackle long-standing economic imbalances.
The program featured tough economic measures like reducing gasoline, water, and energy subsidies. The government received several billion dollars in rescue loans from the IMF in exchange. In December, a $3 billion loan was made.
The Central Bank of Egypt has increased its primary interest rate and devalued the Egyptian pound in recent months in an effort to control inflation.
Millions of people were affected by the economic shock caused by the actions as their savings dwindled due to the increase in living expenses. According to official statistics, 30% of Egyptians are considered to be impoverished.
The Egyptian pound has lost more than 50% of its value relative to the dollar since the European War; on Monday, it was trading at more than 30.80 pounds to one dollar.
