15 May 2013
Prices in Egypt have become unpredictable, and consumers now find themselves paying a different price for the same product on each visit to the supermarket. Inflation has been on the rise since the beginning of this year. April figures show that inflation reached 8.11 per cent, up from 7.59 per cent in March. Core inflation computed by the Central Bank of Egypt (CBE) also increased to 7.47 per cent in April from 7.03 in March. According to a press release by the CBE, "the monthly developments in both headline and core inflation since the beginning of the year were largely driven by broad based increases in food and non food prices on the back of the recent movements in the exchange rate and diesel distribution bottlenecks across the country." Core inflation excludes the impact of temporary price shocks on inflation.
A recent study by TNS, a global market research firm,100 per cent of Egyptians are feeling the pinch of price increases, and 86 per cent expect another wave of increases soon.
Tamer Al-Naggar, TNS CEO for Egypt and North Africa, said in a recent press release that "the recent price inflation was largely driven by broad-based increases in food and non-food prices. The falling value of the Egyptian pound, which has lost more than 10 per cent of its value against the dollar since last year, has pushed up the cost of imported goods and contributed to inflation."
The TNS study, which included around 500 respondents, showed that price increases in necessary commodities have been felt across all income levels, especially among individuals with incomes below LE2,000 per month. Necessary commodities, such as meat, rice, sugar and cooking oil, registered the most detected price increases among respondents at 79 per cent, followed by groceries (66 per cent), household bills including gas, electricity and water (39 per cent) and transportation costs (33 per cent).
Eighty-two per cent of those surveyed believed that the price increases would impact their lifestyles and spending habits. "86 per cent of respondents are still expecting another wave of price increases in the near future. Egypt's political turmoil continues to affect the economy, which is severely strained because of the challenges in reserves, the foreign exchange, the lack of foreign direct investment, and the growing inflation rates," Al-Naggar said.
Prices in Egypt have become unpredictable, and consumers now find themselves paying a different price for the same product on each visit to the supermarket. Inflation has been on the rise since the beginning of this year. April figures show that inflation reached 8.11 per cent, up from 7.59 per cent in March. Core inflation computed by the Central Bank of Egypt (CBE) also increased to 7.47 per cent in April from 7.03 in March. According to a press release by the CBE, "the monthly developments in both headline and core inflation since the beginning of the year were largely driven by broad based increases in food and non food prices on the back of the recent movements in the exchange rate and diesel distribution bottlenecks across the country." Core inflation excludes the impact of temporary price shocks on inflation.
A recent study by TNS, a global market research firm,100 per cent of Egyptians are feeling the pinch of price increases, and 86 per cent expect another wave of increases soon.
Tamer Al-Naggar, TNS CEO for Egypt and North Africa, said in a recent press release that "the recent price inflation was largely driven by broad-based increases in food and non-food prices. The falling value of the Egyptian pound, which has lost more than 10 per cent of its value against the dollar since last year, has pushed up the cost of imported goods and contributed to inflation."
The TNS study, which included around 500 respondents, showed that price increases in necessary commodities have been felt across all income levels, especially among individuals with incomes below LE2,000 per month. Necessary commodities, such as meat, rice, sugar and cooking oil, registered the most detected price increases among respondents at 79 per cent, followed by groceries (66 per cent), household bills including gas, electricity and water (39 per cent) and transportation costs (33 per cent).
Eighty-two per cent of those surveyed believed that the price increases would impact their lifestyles and spending habits. "86 per cent of respondents are still expecting another wave of price increases in the near future. Egypt's political turmoil continues to affect the economy, which is severely strained because of the challenges in reserves, the foreign exchange, the lack of foreign direct investment, and the growing inflation rates," Al-Naggar said.
© Al Ahram Weekly 2013
