What:
According to a Reuters poll, March 2024 could see a significant uptick in Egyptian inflation, influenced by recent economic adjustments including currency devaluation and an increase in fuel prices.
The Prediction:
Analysts polled by Reuters anticipate a climb in annual urban consumer inflation to 36.3% for March, up from February’s 35.7%. This forecast is grounded in the immediate aftermath of economic strategies aimed at stabilizing Egypt’s foreign currency reserves and fulfilling commitments to the International Monetary Fund (IMF).
Why:
A decisive drop in the EGP’s value on March 6, from 30.85 to about 49.5 against the dollar, paired with a 6% hike in overnight interest rates by the Central Bank of Egypt (CBE), have set the stage for this inflationary wave. These moves were part of Egypt’s adherence to an IMF-linked austerity plan, which also saw fuel prices surge on March 22 in a bid to align domestic costs with international rates.
Some Context:
Despite an initial decrease from September’s peak inflation of 38%, an unexpected rise in February flagged enduring inflationary pressures.
Now What:
The state’s statistics agency, CAPMAS, is slated to disclose the official March inflation figures on Monday.
But some experts told Claps otherwise.
We had a chat with experts who predicted a potential cool-down in inflation when asked during late March. 🌬️🌡️ Catch here.
- Omar Amin
- Omar Amin
- Omar Amin
- Omar Amin
- Omar Amin
- Omar Amin
- Omar Amin
- Omar Amin
- Omar Amin
- Omar Amin
- Omar Amin
