Egypt's Inflation Peaks at 36.5% Amidst Rising Food Prices

 

Egypt's economic landscape is witnessing a significant upheaval as the nation's annual headline inflation reached an all-time high of 36.5 percent in July. The latest data, released by the country's official statistics agency, Capmas, reveals a troubling trend fueled by increased prices in food and tobacco sectors.

This surge in inflation surpasses not only the previous month's figure of 35.7 percent but also expert predictions. Prominent financial entities like Naeem Brokerage and Goldman Sachs had estimated a more conservative increase of 36.1 percent, highlighting the challenges of economic forecasting in the ever-evolving landscape.

The month-on-month perspective paints a nuanced picture, with the inflation rate climbing to 1.9 percent in July, showing a slight retreat from June's 2.1 percent. While this decrease may offer some respite, it underlines the consistent pressure exerted on prices and living costs.

Food and beverages, a significant component of the inflation equation, played a pivotal role in this surge. Every subcategory within this segment witnessed price hikes, with fruits taking the lead at an astonishing 12.5 percent increase compared to June. Conversely, the meat and poultry subcategory recorded a relatively modest uptick of 0.8 percent during the same period.