Where inflation is heading in Egypt?

by **Rocky** Mon 13 Feb 2017, 2:10 am

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Where inflation is heading in Egypt?

by Rocky Mon 13 Feb 2017, 2:10 am

Where inflation is heading in Egypt?

2/13/2017 0:00

[rtl]Cairo / follow - up to the morning
«My youngest son is suffering from osteoporosis due to lack of milk intake, which amounted to the price of nine or ten pounds per kilo, and I can not feed him eggs on a daily basis, because of its high price , where the price of a single egg and a half pounds.» Thus received or cream, a woman working for a modest job in the Egyptian capital Cairo, emotionally and anger Commenting on the increasing rise in prices witnessed in Egypt in the recent period, especially the prices of food commodities. It announced the Central Agency for Public Mobilization and Statistics, recording annual inflation to a record level of new index, during the month of January last, reaching 29.6 percent, the highest rate recorded since it began measuring inflation in that country.

And pushed food inflation benchmark to rise, recording an increase of 38.6 percent compared to the same month last year, followed by healthcare index by 33.3 percent, and the index of miscellaneous goods and services increased by 31.3 percent.
He says or cream: «my income from my 700 pounds, the equivalent of US $ 38, and my husband 's income in 1500 pounds, the equivalent of $ 85, and we have four sons , all in the learning stages. I cut my food for the education of my children. Waived for the food but do not want to be forced to compromise on education. »
The inflation rate has been recorded in the December / December , 24.3 percent, a record level record for the first time at the time, while 19.4 percent record last November, versus 13.6 percent in October / October last.
Despite that record - high inflation, but experts believe that the real rate may be greater than that, especially for limited-income families.
The name says Fayyad, an economics professor at the Higher Institute for Cooperation on Agriculture in Cairo: «According to the latest search for the family budget for the year 2012/2013, which was announced by the packaging and Statistics Authority at the end of 2015, 40 percent of the Egyptian family spending goes hand food commodities, being the rate of inflation measured this basis. »
He adds: «According to the research itself, the 29.5 percent of the Egyptian poor families or below the poverty line, and these families often spend 60 or 70 percent of their income on food commodities, and therefore the rate of inflation for this is higher than the official figure of families much».
The measures inflation consumer goods and services purchased for the purposes of daily life price index, on an annual basis, that is, by comparing the prices recorded during the same month of the previous year.

Will you continue inflation waves?
Fayyad says this rate is unprecedented in Egypt have not seen the worst of crises, including in times of war.
Fayyad and is likely to continue rising inflation, says: «imports Egypt about 50 percent of its wheat, whose prices have increased more than doubled after the liberation of the exchange rate, and the production inputs and agricultural private fertilizer has increased its price by about 50 percent, and therefore farmers will sell next crop at higher prices and so on . »
The Egyptian central bank, announced on November 3, editor of the Egyptian pound exchange rate against foreign currencies, the government has conducted a substantial increase in fuel prices, in a move she said was part of a long - term economic reform program under the conditions imposed by the IMF
International.
The decline in the Egyptian pound 's exchange rate against the dollar from 8.88 pounds to the dollar before the float down to twenty pounds, before declining slightly in recent days to about 18 pounds, which led to a large and consecutive jumps in the prices of goods and services.
He adds Fayyad: «I expect waves of price rises for months to come, unless there is afundamental change in the domestic production of agriculture, industry and tourism and so on , but to rely on reducing or preventing imports , compelling way that will not work in the long run, as it will cause further recession and inflation» .
But Ambassador Gamal Bayoumi, a former diplomat and secretary general of the Arab Investors Union sees inflation waves will not continue, due to several reasons including the decline in the dollar against the pound during the past two weeks, and government intervention to provide goods at prices
suitable.
He says Bayoumi: « the state intervene to curb inflation, through the provision of goods in the cooperative consumer associations and ration cards, and a public service of the Armed Forces which food commodities provides a cheap price, and the program Takaful and dignity , which provides income for families of
poor»
and adds: « The dollar slipped from 20 pounds to 19 and then 18 and may be today at 17 pounds, due to a package of economic policies , including the reduction of imports, and improve tourism , even a few percent ».
Bayoumi says: « The dollar will decline to lower prices of production inputs, and then decline in the prices of goods and services».
Experts say that Egypt imports about 65 percent of the operating and production requirements, and 70 percent of the consumption of food commodities, and primarily wheat.
Some blame high prices to traders ' greed and the lack of controls on the markets.
Nor deny Abu Jihad, wholesaler of food commodities and the existence of greed when some traders, but it is not the rule and does not represent, in his view, a major cause of price rises.
He says: «about a year before you buy goods for my shop about five thousand pounds a day, now I buy the same amount of goods with eight and possibly nine thousand».
He adds: «I had to add 50 thousand pounds you've Edjrtha capital of Mali, even to preserve the continuation of the commercial project. I suffer because my capital is eroding, and the profit margin decreases with each new rise in prices. »
And confounds locked infection, a wholesaler of food, sued the greed of traders and says: «Are the greed of traders suddenly appeared and infection at the state level? This excuse for failing officials want to blame their failure on the merchants. »
He adds: «If traders were greedy where the means of the state and its instruments to cope with it, then why the state raised the price of subsidized sugar to eight or nine pounds after it was three or four. The answer because there is a real crisis had nothing to do with traders. »
Says Ayatollah Mohammed, a housewife: «My family is made up of six members, and I spent a month about 2,500 pounds, $ 140, and now spent four thousand and Tcfhina».
She adds: «ceded many items from a spending on food commodities, and reduced the number of times eating meat in half, let alone any spending on entertainment. We no longer go out for a walk
about. »
Egyptian President Abdel Fattah al- Sisi had said in December / last December that his government was working «hard» to ease the effects of economic decisions the burden of low - income people , stressing that there was no substitute for taking those
decisions.
Egypt is suffering an economic crisis due to the exit of foreign investment and the decline in tourism revenues and Suez Canal, as well as a significant decrease in remittances from Egyptians working abroad.[/rtl]
[rtl]http://www.alsabaah.iq/ArticleShow.aspx?ID=131663[/rtl]

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Where inflation is heading in Egypt?

Where inflation is heading in Egypt?

Where inflation is heading in Egypt?

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