There was a reduction in Egypt’s annual urban consumer inflation for the second consecutive month to 9.1% in February from 10.1% in January, according to the Centre of Statistics and Mobilisation (CAPMAS).
Egypt’s government, which is struggling to revive its economy, has been attempting to stem the rise of food prices amid increasing inflationary pressures.
Basant Fahmy, a banking expert and the chairman of the economic committee in the Dostor Party, said that the increase in the rate of inflation is due to the increase in devaluation of the Egyptian pound against the US dollar. She stated the government is preparing a plan to control the price of the dollar.
Fahmy predicted that there will be better economic metrics in the month of March, with the inflation rate declining despite the continued devaluation of the of the Egyptian pound against the US dollar, a phenomenon that Fahmy expect to cause the price of imported good to soar.
Fahmy also added that the decision to reduce the price of gas for steel factories will impact the value of the dollar.