Rentier State

Egypt: Sisi’s options on devaluation, debt narrow as inflation hits record

By David Whitehouse

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Posted on July 11, 2023 13:13

Egypt’s President Abdel Fattah al-Sisi
Egypt’s President Abdel Fattah al-Sisi. (Johanna Geron, Pool Photo via AP)

Egypt’s year-on-year inflation increased to 35.7% in June versus 32.7% in May while core inflation, which excludes fuel and some food items, also climbed to a record of 41%. The soaring consumer prices further compound the financial misery of the North African country and limit its options.

Egyptian President Abdel Fattah al-Sisi had already said in June that further devaluation of the pound could affect national security and the well-being of the country’s people. With energy and food prices accounting for about 38% of the consumer price index, the June inflation level is likely to heighten his concerns.

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