Egypt’s inflation to remain above central bank target in 2023
Inflation in Egypt will most likely continue to rise in the coming months to peak above 30% by mid-year, well above the government’s target.
To:
Al-Monitor Pro Members
From:
Marc Español
Freelance journalist covering Egypt and Sudan
Date:
Feb. 23, 2023
Bottom Line:
Inflation in Egypt hit a five-year high of 25.8% in January, largely driven by the sharp devaluation of the local currency and constraints on imports amid a dollar shortage. The impact on the purchasing power of Egyptians and the private sector, which has remained in contractionary territory for more than 24 months in a row, has been severe. In the coming months, prices will continue to rise above the Central Bank of Egypt’s targets, leaving authorities with the tricky task of bringing them under control in the second half of 2023.
