Egypt inflation soars to near 33% amid subsidy cuts

Egypt’s inflation jumps to almost 33 percent, the government says as Egyptians continue to brace themselves in the face of steep price hikes and austerity measures.

According to figures published by the Central Bank, the urban annual inflation rate reached 32.95 percent in July — up from 29.76% in June. The announcement comes amid forecasts that the inflation rate would remain above 30 in the coming months.

The Central Bank also says that annual core inflation increased to 35.26 percent, up from 31.95 in June. Core inflation excludes volatile commodities such as food and energy.

Dubai-based Arqaam Capital attributes the hike in urban inflation to the increase in fuel prices the month before. It also says a July surge in electricity prices will impact August’s rate.

In June, Egypt raised prices for commonly used fuel — 80-octane gasoline and diesel by 55% and doubled the price of gas canisters, used in the majority of households for cooking. The government later upped electricity prices by more than 40%, followed by surges in public transportation fares and drinking water.

— AP