The head of the research sector at Al-Ahly Pharos Securities Brokerage Company, Radwa Al-Swaify, explained that if there is no lifting of bread subsidies in Egypt, then in the most difficult readings of inflation in the third quarter of 2022 it will be in the range of 9 percent.
She pointed out that "passing part of the world's wheat increases to the citizen and lifting subsidies on bread may result in a rise in the inflation rate to 12 percent," noting that "the inflation rate will range from 7 to 8 percent in the fourth quarter."
She stressed that "the result of the comparison with the base year and the failure to raise subsidies, inflation will be within the framework of the Central Bank's goals, and therefore the third quarter of this year will be the biggest challenge for inflation readings." She explained, "The Central Bank of Egypt has declared that what is happening in the inflation readings currently are unusual circumstances, and therefore emerging markets will be forced to raise interest rates during the current year, including Egypt."
The data of the Egyptian Central Agency for Public Mobilization and Statistics showed a rise in consumer price inflation in Egyptian cities to 7.3 percent in January on an annual basis from 5.9 percent in December.
Source (Al-Arabiya.net website, customized)
