Egypt’s annual inflation continued its rise in January, hitting 26.5 percent, the highest since the end of 2017, the country’s official statistic agency announced on Thursday.
The annual inflation rate was eight percent in the same month in 2022, the Central Agency for Public Mobilization and Statistics (CAPMAS) in a statement.
Among the drivers behind the spike in the annual inflation, the prices of food and beverages increased by 48.1 percent, water, electricity, and fuel by 7.2 percent, furniture by 28.2 percent, health care service by 15.1 percent, transportation by 18.5 percent, entertainment by 30.6 percent, and hotels and restaurants by 42.8 percent, it said.
It added the annual urban inflation in January 2023 compared to December 2022 jumped by 4.9 percent.
According to Adel Amer, an Egyptian economist, “the increase of the annual inflation rate is caused by the country’s economic crisis driven mainly by global economic problems and local low production as well as the devaluation of local currency.”
Over the past year, the Egyptian currency has depreciated by nearly 50 percent with an official rate of the pound against the dollar now standing at 30.3, according to the Central Bank of Egypt (CBE).
