Inflation in Egypt reached new heights in January
2023.02.09 08:25
Inflation in Egypt reached new heights in January
By Tiffany Smith
Budrigannews.com – According to data released on Thursday by the statistics agency CAPMAS, Egypt’s annual urban consumer price inflation rose to a higher-than-expected 25.8% in January, marking the fastest increase in more than five years. In December, the rate was 21.3%.
The rise came as a result of currency devaluations that began in March 2022, a prolonged shortage of foreign currency, and persistent delays in importing goods. Since March, the Egyptian pound has decreased by nearly 50%.
Inflation in January reached its highest level since December 2017, a year after a significant devaluation.
According to the median prediction of 14 economists polled by Reuters, they had anticipated a reading of 23.75 percent.
Core inflation was expected to rise to 26.6% from 24.4% in December, according to five analysts.
The January figure is expected to be released by the central bank later on Thursday.
According to Allen Sandeep of Naeem Brokerage, headline inflation increased across the board, but food and non-alcoholic beverages, which make up 32.7% of the index’s basket, were particularly to blame. “As producers continued to pass through higher import bills to shoppers,” said Sandeep.
According to Sandeep, food and beverage prices increased by 10.1% per month, causing prices to rise by 4.7% per month compared to 2.1 percent in December.
The high number in January puts more pressure on the Monetary Policy Committee of the central bank to raise interest rates when it meets again on March 30.
The MPC said that its rate increases of 800 basis points over the past year should help to control inflation at its most recent meeting on February 2.
