The inflation rate in Egyptian cities rose last month to its highest level in more than 5 years, recording 32.7%.
The reason for the high inflation is attributed to several factors, most notably:
- The value of the pound (local currency) against the dollar.
- Lack of foreign currency.
- The return of the accumulation of goods in ports pending customs clearance.
The data, released by the Central Agency for Public Mobilization and Statistics (CAPMAS), was in line with investment banks' expectations.
Inflation stood at 31.9% in February, and the Central Bank of Egypt raised interest rates by 200 basis points last month to counter inflation.
Egypt's all-time highest inflation rate was 32.9% in July 2017, eight months after the pound was halved against the dollar as part of a previous $8 billion IMF support package.
The core inflation rate, which excludes fuels and some volatile food products, is expected later on Monday.
According to analysts' median estimates, core inflation in Egypt is expected to hit a new record high of 42.25% in March from 40.26% in February, the highest recorded so far.
Cairo, which reached an agreement on a $3 billion IMF financial support package, has halved the value of its currency against the dollar since March 2022, after the repercussions of the Russian war on Ukraine exposed the weaknesses of the Egyptian economy.