Egypt inflation rises to 12.1% as foreign reserves dip


Ladies promoting greens in Egypt. — AFP

CAIRO: Egypt’s annual inflation charge hit 12.1 in step with cent in March, respectable figures confirmed Sunday, as overseas reserves declined through $4 billion right through the similar month, in line with the central financial institution.

“The yearly headline inflation charge recorded 12.1 in step with cent for March 2022, in comparison to 4.8 in step with cent for a similar month remaining 12 months,” the Central Company for Public Mobilisation and Statistics (CAPMAS) stated in a observation.

The newest determine marks an build up of greater than two in step with cent in comparison to the ten in step with cent inflation charge recorded in February — already at a close to three-year prime. 

This comes not up to 3 weeks after the Egyptian pound depreciated towards the greenback, dropping about 17 in step with cent of its worth in sooner or later.

The Arab international’s maximum populous nation has been struck through mounting financial pressures since Russia’s invasion of Ukraine in overdue February led to international commodity value to shoot up.

As the sector’s biggest importer of wheat, Egypt relied at the two international locations for 85 in step with cent of its provide, in addition to 73 in step with cent of its sunflower oil.

CAPMAS attributed the most recent hike to a surge in meals costs, particularly an 11 in step with cent build up in bread and grain costs and a 36.2 in step with cent build up in the cost of cooking oil.

It comes after the Central Financial institution of Egypt stated on Thursday that overseas reserves noticed a $4 billion decline, registering $37 billion on the finish of March 2022, in comparison to $41 billion in February.

It attributed the decline to its mobilisation of overseas reserves “to calm the markets” within the wake of the Ukraine battle.

Egypt has rolled out a chain of measures to mitigate the industrial fallout from the war, together with saying a $7 billion aid bundle to protect society’s maximum prone.

It additionally introduced it was once making use of for a brand new mortgage from the World Financial Fund.

Regional best friend Saudi Arabia remaining month deposited $5 billion without delay in Egypt’s central financial institution.

A 3rd of Egypt’s 103 million other folks reside in poverty, and just about the similar quantity are at risk of falling into poverty, in line with the Global Financial institution.

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