After devaluing the currency… the specter of inflation dominates Egypt

Egypt faces the risk of higher inflation rates in March as prices adjust, the currency is devalued, and interest rates are raised during the month, which was followed two weeks later by raising fuel prices.

The austerity measures were linked to an $8 billion financial support package agreed with the International Monetary Fund in early March after a chronic shortage of foreign currency for more than two years.

According to the average forecast of 12 analysts, annual inflation in Egyptian cities is expected to jump to 36.3 percent from 35.7 percent in February.

The Central Bank allowed the value of the Egyptian pound to fall to about 49.5 against the dollar on March 6 from the level of 30.85 at which it had kept it in the previous 12 months.