Egypt’s yearly inflation rate has reached a new high; reached 39.7%

September 14, 2023

Egypt’s annual inflation rate reached a new high in August, as the cash-strapped government battled price increases and a sinking currency, according to the Egyptian statistics bureau.
According to figures issued by the state-run Central Agency for Mobilization and Statistics, the annual inflation rate reached 39.7 percent last month, up from 38.2 percent in July.

Prices rose 1.6 percent month over month in August, down from 1.9 percent in July.

Following the Russia-Ukraine war, which triggered a global wave of inflation, prices in Egypt soared across numerous industries, from food and medical services to housing and furnishings.

According to data released, food costs, which are the main drivers of inflation, increased by more than 70% in August compared to the same month last year.

In August, the inflation rate more than doubled compared to the same month last year, when it was 15.3 percent. Economic pressures, a lack of foreign currency, and successive devaluations of the native currency all contribute to the increase.

Since the Russian invasion of Ukraine, the Egyptian pound has lost more than half of its value against the US dollar. This has placed further strains on millions of Egyptians, who have seen their savings dwindle as the cost of living has risen. According to government data, approximately 30% of Egyptians are poor.

Source: Hürriyet Daily News
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