Egypt’s July inflation rate hits highest level in decades

Egypt’s July inflation rate hits highest level in decades
Egypt’s annualized urban consumer price inflation jumped in July to 33 percent from 29.8 percent in June. (Reuters)
Updated 10 August 2017

Egypt’s July inflation rate hits highest level in decades

Egypt’s July inflation rate hits highest level in decades

CAIRO: Egypt’s annualized urban consumer price inflation jumped in July to 33 percent from 29.8 percent in June, the official CAPMAS statistics agency said on Thursday, its second highest rate on record.
Egypt raised fuel prices by up to 50 percent in July to help meet the terms of a $12 billion (SR45 billion) loan deal with the International Monetary Fund, which includes tax increases and subsidy cuts.
Import-dependent Egypt has been hit by soaring inflation since it floated its currency in November as part of the IMF deal, which led to the pound roughly halving in value.
The central bank raised its key interest rates by 200 basis points last month, seeking to ease the inflationary pressure.
Sharply rising prices present a challenge for Abdel Fattah El-Sisi and his government, which have pledged to push ahead with politically sensitive austerity measures.