Egypt: Inflation Up to 15.8% Due to 38% Prices Hikes

Egypt: Inflation Up to 15.8% Due to 38% Prices Hikes

Annual inflation rate raised to 15.8% last March compared to 12.1% last February. The Central Agency for Public Mobilization and Statistics (CAPMAS) declared that the inflations rise came as a result of the increase of food prices to 38.1% in Egypt . Corn and bread prices rose to 48.1% while fruits raised by 20% and oils and fats by 45.2%.

In its monthly bulletin of Consumers” Prices, the CAPMAS reported the increase of vegetables prices by 21.3% and cheese and eggs by 16.3%. The CAPMAS indicated that the commodities and services prices rose by 10.5% during March this year.

The CAPMAS also reported the monthly rate increase by 4.8%; Egypt “s rural areas rate has been more than urban ones; it mounted 5.2% in during March 2008 compared to January 2008. Urban areas inflation mounted 5.2%.

In the same regard, Dr. Abdul-Shakour Shaalan, representative of Egypt and Arab countries at the IMF, called the government to take serious steps for income redistribution, because the poor go poorer, while the rich go richer nowadays. On the margin of the door knocking mission organized by the American Chamber in Cairo , he said that economic reforms are not linked to democracy process.

Shaalan stated that Egypt “s current economic troubles require governmental initiatives to impose different forms of taxes, e.g. taxes on capital, bourse profits that are transferred from outside, and on those who re-sell their allocated lands by rocketing prices.