Egypt's Inflation Surge: Challenges and Responses

Egypt's urban consumer price inflation rose to 13.6% in March, surprising analysts. Key factors include soaring food prices and historical base effects. After the Russia-Ukraine conflict, inflation climbed, causing economic shifts. Despite efforts to stabilize finances, such as currency devaluation and IMF packages, inflation remains a challenge.

Egypt's urban consumer price inflation surged to 13.6% in March, surpassing analysts' predictions of a drop to 12.6%, according to CAPMAS data released on Thursday.

Food and beverage prices notably increased, contributing to the monthly hike of 1.6%. Yearly, prices in this category showed a substantial rise from 3.7% in February to 6.6% in March.

The inflationary trend, exacerbated by the Russian invasion of Ukraine, is partly due to the withdrawal of foreign investments and subsequent financial strategies, including currency devaluation and an IMF support package.

(With inputs from agencies.)