Egypt's urban inflation accelerated to its fastest pace in more than five years, as a sharp devaluation put further pressure on consumers.
According to the state statistics agency, the index rose 25.8% year-on-year in January, compared to 21.3% in the previous month. The increase was driven by a 48% rise in food and beverage prices, the single largest component of the inflation basket. On a monthly basis, inflation stood at 4.7%, the fastest rate since 2016.
The rally was widely expected after the pound fell by almost 18% last month alone. The currency has lost nearly half its value against the dollar since March 2022. It was the latest sign of Egypt's gradual shift to a flexible exchange rate, a move that helped Egypt secure a $3 billion deal with the International Monetary Fund for an economy suffering from rising food and fuel import bills caused by Russia's invasion of Ukraine.
Source (Al-Araby Al-Jadeed, Edited)
