Egypt’s Inflation Rate Increases to 32.7%

Egypt’s annual inflation rate rose to 32.7% in May from 30.6% in April, according to data released by the Egyptian Central Agency for Public Mobilization and Statistics today, Saturday.

Monthly Inflation Rate also Rises

The Central Agency for Public Mobilization and Statistics reported that the monthly inflation rate rose by 2.7% in May.

Consumer Price Index Increases

According to a press release published on the agency’s website, Egypt’s overall consumer price index reached 174.1 points last month, registering an increase of 2.7% compared to April last year.

Rise in Prices of Essential Goods

The agency attributed the inflation to a rise in prices for cereals and bread by 4.6%, meat and poultry by 2.1%, seafood and fish by 9.8%, oils and fats by 5.9%.

Dependence on Imports

Egypt, heavily dependent on imports, is suffering from rising prices for goods and services as a result of the devaluation of the Egyptian pound against the dollar and difficulties with foreign exchange flows.

Financial Risks for Egypt

Previously, credit rating agencies pointed to increased financial risks for Egypt due to the growth of its future needs. As a result of these risks, Standard & Poor’s changed its outlook on Egypt from stable to negative, while Fitch downgraded Egypt’s credit rating from B+ to B with a negative outlook.

Source

Source: agencies