Egypt’s Inflation Reaches Record Levels, Causing Prices To Soar

(CTN News) – Egypt’s annual inflation rate in February 2024 increased significantly to 36.0 percent from this January’s rate of 31.2 percent, according to recent data released by the Central Agency for Public Mobilization and Statistics (CAPMAS).

Over the same period, there has been an increase of 219.4 points in the consumer price index, as well.

As a result of soaring prices across a range of sectors, inflation has risen over the past few months. Meat and poultry (25.0 percent), cereals and bread (14.2 percent), fish and seafood (11.5 percent), dairy products such as cheese and eggs (12.8 percent), as well as oils and fats (14.1 percent) are among the key areas experiencing notable increases.

During the month of February 2024, the rate of inflation in Egypt’s urban consumer price index (CPI) increased significantly, reaching 35.7%, up from 29.8% in January 2024.

Since March 2022, the Central Bank of Egypt (CBE) has tightened its monetary policy, increasing interest rates by a total of 19 percent in a bid to address the escalating inflation.

During an unscheduled meeting in March 2024, the CBE implemented an unprecedented six percent interest rate hike, in an effort to stabilize the economy. This allowed the local currency rate to be subject to market forces since a rate hike was unprecedented at the time.

A number of measures, such as the release of stockpiled commodities at the ports, valued at USD 12 billion (EGP 592 billion), have been taken by Egypt to combat inflation.

In addition, Egypt has just signed a USD 35 billion (EGP 1 trillion) Foreign Direct Investment (FDI) deal with the UAE in order to develop the coastal zone of Ras El-Hekma in cooperation with the UAE.

As part of its Extended Fund Facility (EFF) program, the International Monetary Fund (IMF) has significantly increased the amount of funds it has provided to Egypt to USD 8 billion (EGP 395 billion) from USD 3 billion (EGP 148 billion).

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