Egypt institutes price controls for bread

The Egyptian government fixed the price of bread today. 

Prime Minister Mustafa Madbouly declared that the price of 1 kilogram (2.2 pounds) is 11.5 Egyptian pounds ($0.63). The regulation applies to nonsubsidized bakeries, the state-owned news outlet Al-Ahram reported. 

Violators could face fines between $5,500 and $275,000 if caught, according to the outlet. 

Why it matters:

Egypt’s wheat supply has been significantly affected by the Russian invasion of Ukraine. Before the war, Egypt received around 80% of its wheat from the two countries, and prices have since skyrocketed. Egypt is one of the biggest wheat importers in the world. 

The conflict has prompted the Egyptian government to seek imports from other countries, including the United States. They have also granted wheat farmers incentives to increase their quantities, according to Al-Ahram. 

What’s next: 

Some wheat shipments from Ukraine and Russia to Egypt managed to ship last week and were scheduled to arrive within days. 

The price controls will remain in effect until further notice, according to Al-Ahram.