S&P Global expects inflation in Egypt to accelerate further despite July's record of 36.5 percent, given the increase in electricity tariffs, supply bottlenecks represented by import backlogs, and the further weakening of the Egyptian pound.
Upward pressure on wheat and rice prices as a result of Russia's withdrawal from the Black Sea Grain Initiative and India's decision to ban rice exports is likely to keep food inflation high.
S&P Global expects headline inflation to peak near 39 percent year-on-year in October, ending the year at nearly 35 percent in 2023 and 20 percent in 2024, and the Egyptian pound is expected to devalue from 30.9 per dollar to 37 pounds per dollar by the end of 2023.
Source (Al-Rai Kuwaiti Newspaper, Edited)
