Inflation in Egypt breaks records

In August, the annual inflation rate in Egypt reached new record levels, amounting to 39.7%. The country continues to suffer from a shortage of funds, price increases and currency depreciation.

In July, inflation was fixed at 38.2%. Monthly price growth was 1.6% in August, while in July it was 1.9%.

High inflation rates have affected food prices, which have increased by more than 70% compared to August last year. In addition, medical services, housing and furniture have become more expensive. 

Egypt is facing economic pressure, a shortage of foreign currency and the devaluation of the national currency, which has lost more than 50% of its value against the dollar since the start of the war in Ukraine in February 2022. This led to difficulties for millions of Egyptians, whose savings began to be depleted due to the rising cost of living. Official data indicates that about 30% of Egyptians live in poverty.

Egypt today is the world's largest importer of wheat, and most of its imports usually come from Ukraine and Russia. Moreover, it is the most populous Arab country with a population of more than 105 million people.