Egyptians bear down under worst inflation in a decade
CAIRO — Egyptians are bearing down under their worst inflation in a decade, cutting spending as much as possible as prices surge on basic food items, transport, housing, and even some essential medicines.
Inflation reached almost 30 per cent in January, up five per cent over the previous month, driven by the floatation of the Egyptian pound and slashing of fuel subsidies enacted by President Abdel-Fattah el-Sissi in November.
The move was part of a reform package to secure an IMF bailout loan of $12 billion desperately needed to shore up investor confidence and overhaul the economy. Immediately after the floatation, the pound lost over half its value, making a wide range of Egypt’s many imported goods double in price.
In the months since, Egyptians have been left with a grim search for ways to tighten their belts and make ends meet, hoping eventually the promised benefits of reform like growth and job creation come.