Iran War Drives Egyptian Inflation Rate to Highest Since May

4hs}ym2z{au2p7ftbn1x62qy_media_dl_1.png CAPMASArticle content(Bloomberg) — Egypt’s annual inflation rate rose to the highest level since last May, after the Iran war caused a surge in global energy prices and a weakening of the local currency.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentConsumer-price growth in urban areas accelerated to 15.2% in March from 13.4% in February, state statistics agency CAPMAS said Thursday.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentMonthly inflation quickened to 3.2% from 2.8%, the most elevated level since February 2024, according to data compiled by Bloomberg.Article contentArticle contentAn inflationary uptick during the first full month of the US-Israeli war on Iran was widely anticipated by economists. While far from the conflict’s epicenter in the Persian Gulf, import-dependent Egypt has been roiled by spillover effects, with billions of dollars of foreign-portfolio investment exiting, its pound trading at record lows and the government facing higher energy bills.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe Egyptian currency regained some ground on Wednesday after the announcement of a ceasefire, posting its biggest daily gain since 2017, according to data compiled by Bloomberg. It’s now at about 53.3 per dollar, compared to 47.9 just before the conflict erupted.Article contentAll the same, the shockwaves are challenging Egypt’s progress in easing consumer-price growth, which soared to a record 38% amid an economic crisis in September 2023.Article contentAuthorities hiked prices for fuel and public transport tickets in March as the war raged. At the weekend, they increased electricity bills for higher-consuming households and the commercial sector by averages of 16% and 20%, respectively.Article contentFood and beverage prices, the inflation basket’s largest component, rose an annual 5.8% last month. The Muslim holy month of Ramadan ran from mid-February to mid-March this year, a period marked by large evening meals and family gatherings.Article contentArticle contentRecent price rises and ongoing geopolitical uncertainty may prompt a new bout of monetary tightening from the central bank.

The Middle East’s most populous country had embarked on a cycle of rate cuts last year to spur private investment and trim interest payments on state debt.Article contentThe regulator on April 2 held rates for the first time since November, adopting what it called a “wait-and-see approach.” The benchmark remains elevated at 19%, with a tight monetary-policy stance helping “ensure inflation expectations remain anchored, pressures are contained and disinflation is restored,” the central bank said in its statement.Article contentThe next rates meeting is scheduled for May 21.

Goldman Sachs Group Inc. has forecast authorities may raise borrowing costs by 200 basis points this year to tackle inflationary pressures stemming from the war.Article content—With assistance from Mirette Magdy.Article contentTrending Doritos at US$7 a bag ended up costing PepsiCo billions Retail & Marketing BYD to open 20 car dealerships in Canada this year Autos Canadian pension plans are so healthy that employers are taking a contribution 'holiday,' says Mercer Retirement Subscriber only. Saudi Arabia’s vital East-West oil pipeline attacked after ceasefire Subscriber only Financial Times Canada's accountant shortage is starting to add up despite quieter tax season Personal Finance Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Doritos at US$7 a bag ended up costing PepsiCo billions Retail & Marketing BYD to open 20 car dealerships in Canada this year Autos Canadian pension plans are so healthy that employers are taking a contribution 'holiday,' says Mercer Retirement Subscriber only. Saudi Arabia’s vital East-West oil pipeline attacked after ceasefire Subscriber only Financial Times Canada's accountant shortage is starting to add up despite quieter tax season Personal Finance