Inflation in Egypt hits nearly 40%. According to official figures released on Sunday, Egypt’s annual inflation rate rose to an all-time high of 39.7 percent in August as the nation battles a severe economic crisis.
It comes shortly after the previous high of 38.2 percent, which was set in July. And more than a year into an ongoing economic crisis that has seen the currency lose half of its value against the US dollar.
According to CAPMAS, the state statistics agency, food and drink prices alone have increased by 71.9 percent since August 2022. Which adds to the burden on already struggling families.
Russia’s invasion of Ukraine last year, which disrupted vital food supplies and unbalanced global markets, served as the catalyst for the economic crisis in the import-dependent nation.
Despite deposits from wealthy Gulf allies whose promises to buy Egyptian state assets fallen short of government goals, investors withdrew billions from Cairo’s foreign reserves, which still kept afloat by investors’ withdrawals.
According to the World Bank, 30% of Egyptians were already living below the poverty line and another 30% were at risk of doing so before the current crisis.
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The most populous nation in the Arab world, Egypt, has recently relied on bailouts from both Gulf allies and the International Monetary Fund.
The IMF granted Egypt a $3 billion loan last year, subject to “a permanent shift to a flexible exchange rate regime.”
According to figures from the Ministry of Planning, the country’s external debt has tripled over the past ten years, reaching a record high of $165.4 billion this year.