According to Ahram Online, Egypt’s annual inflation rate surged to 14.9 percent in April, significantly higher than the previous month’s 12.1 percent. The data, which was provided by the Central Agency for Public Mobilization and Statistics (CAPMAS), further detailed that Egypt’s urban areas are currently suffering from a 13.1 percent inflation rate.
Egypt’s rising inflation rate is felt through the plethora of challenges the country continues to face, domestically and internationally.
The Russian war on Ukraine has destabilized the global economy, while also detrimentally cutting Egypt’s wheat reserves. The rising prices of food and beverages globally have caused prices in Egypt to inflate to 29.3 percent, all while the country’s economy continues to recover from the prior impact of COVID-19’s pandemic which particularly touched upon the tourism sector, pivotal to the country’s GDP.
In March, the Central Bank of Egypt (CBE) devalued the currency by 14 percent in response to the global economic shortages caused by the war.
The inflationary impact caused by these challenges is clear in April’s data, as prices of food and beverages accelerated up by 8.1 percent in April; clothing by 3.8 percent; and housing, electricity, and gas by 1.1 percent.
The wave of inflation continues to strain other countries as well. The United States Federal Reserve has bumped the US Dollar’s interest rates up by 0.75 percent since March, a decision that analysts fear may trigger the potential for another loan to Egypt.
In response to the US Dollar’s interest rate hike, members of CBE are expected to meet on 19 May to review the country’s interest rates amid the recent global and domestic economic changes.