Egypt's annual inflation rate climbed to 31.9 per cent in February, from 25.8 per cent in January, a higher-than-expected increase that lays bare the country's deepening economic woes.
The figure, reported by the state statistics agency Capmas on Thursday, is the highest in more than five years, driven by elevated food prices which soared 14 per cent month on month and by about 62 per cent annually.
The reading was higher than EFG Hermes' projected 27 per cent increase and above the 27.7 per cent estimate by Naeem Brokerage.
The sharp rise in food prices is “a reflection of supply shortages, as well as speculative activities by traders, rather than being purely an impact of a weakening Egyptian pound”, EFG Hermes, an investment bank, said in a note on Thursday.
“One of the largest food items to see major price hikes is poultry, where a shortage of feed, as well as speculation about its prices, in light of foreign exchange uncertainty, disrupted supply and increased the cost of the end-product significantly,” it said.
The prices of poultry, now a common substitute for the much more expensive red meat, rose 37.7 per cent a month and by about 70 per cent in the past two months.
Non-food inflation rose 2.1 per cent month on month and 18.1 per cent annually.
The sharp increase in inflation follows the slide of the Egyptian pound by about 50 per cent since March last year and coincides with a persistent shortage of foreign currency that led to long delays in getting imports into the country, something that has, in turn, hit local industries badly.
The government says the fallout from the Russia-Ukraine war is to entirely blame for the country's economic woes, a contention that is disputed by critics who attribute the crisis mostly to excessive borrowing and spending on multibillion dollar national projects.
The economic crisis has prompted the government to embrace measures to shield the most vulnerable Egyptians against the price hikes. Last week, it decreed an increase in pensions, government employees' salaries and the size of annual income exempted from tax.
It has also repeatedly put off removing subsidies on domestic electricity and extended the coverage of social and economic support programs for millions of the poorest Egyptians.
Inflation in the Arab world's third-largest economy is certain to go up in March after last week's move to raise fuel prices and is expected to prompt further rates increases from the Central Bank of Egypt.
The banking regulator raised interest rates by 800 basis points last year as inflation soared. It maintained its rates earlier this year after the US Federal Reserve increased its own to their highest since 2008.
“Despite being mostly a reflection of supply disruptions, we still think the last two inflation readings are likely to prompt the CBE to resume its tightening cycle,” EFG Hermes said.
“Inflation has only significantly increased from those levels and, with elevated inflation expectations, we think further tightening is warranted.”
The investment bank is projecting increases of 200 bps in the first half of 2023, but said there is “upside risk” to its forecast, in light of the significant increase in inflation over the past two months.
Naeem Brokerage expects interest rates increases of 200 bps to 300 bps in the central bank's next Monetary Policy Committee meeting, which it said could be preceded by an emergency meeting.
The central bank's next meeting is scheduled for March 30.
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%3Cp%3E-%20April%2017%2C%202013%3A%20A%20bipartisan-drafted%20bill%20to%20expand%20background%20checks%20and%20ban%20assault%20weapons%20fails%20in%20the%20Senate.%3C%2Fp%3E%0A%3Cp%3E-%20July%202015%3A%20Bill%20to%20require%20background%20checks%20for%20all%20gun%20sales%20is%20introduced%20in%20House%20of%20Representatives.%20It%20is%20not%20brought%20to%20a%20vote.%3C%2Fp%3E%0A%3Cp%3E-%20June%2012%2C%202016%3A%20Orlando%20shooting.%20Barack%20Obama%20calls%20on%20Congress%20to%20renew%20law%20prohibiting%20sale%20of%20assault-style%20weapons%20and%20high-capacity%20magazines.%3C%2Fp%3E%0A%3Cp%3E-%20October%201%2C%202017%3A%20Las%20Vegas%20shooting.%20US%20lawmakers%20call%20for%20banning%20bump-fire%20stocks%2C%20and%20some%20renew%20call%20for%20assault%20weapons%20ban.%3C%2Fp%3E%0A%3Cp%3E-%20February%2014%2C%202018%3A%20Seventeen%20pupils%20are%20killed%20and%2017%20are%20wounded%20during%20a%20mass%20shooting%20in%20Parkland%2C%20Florida.%3C%2Fp%3E%0A%3Cp%3E-%20December%2018%2C%202018%3A%20Donald%20Trump%20announces%20a%20ban%20on%20bump-fire%20stocks.%3C%2Fp%3E%0A%3Cp%3E-%20August%202019%3A%20US%20House%20passes%20law%20expanding%20background%20checks.%20It%20is%20not%20brought%20to%20a%20vote%20in%20the%20Senate.%3C%2Fp%3E%0A%3Cp%3E-%20April%2011%2C%202022%3A%20Joe%20Biden%20announces%20measures%20to%20crack%20down%20on%20hard-to-trace%20'ghost%20guns'.%3C%2Fp%3E%0A%3Cp%3E-%20May%2024%2C%202022%3A%20Nineteen%20children%20and%20two%20teachers%20are%20killed%20at%20an%20elementary%20school%20in%20Uvalde%2C%20Texas.%3C%2Fp%3E%0A%3Cp%3E-%20June%2025%2C%202022%3A%20Joe%20Biden%20signs%20into%20law%20the%20first%20federal%20gun-control%20bill%20in%20decades.%3C%2Fp%3E%0A
Silent Hill f
Publisher: Konami
Platforms: PlayStation 5, Xbox Series X/S, PC
Rating: 4.5/5
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
What is a robo-adviser?
Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.
Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.
Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
Sunday's Super Four matches
Dubai, 3.30pm
India v Pakistan
Abu Dhabi, 3.30pm
Bangladesh v Afghanistan
Essentials
The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.
If you go
The flights
Emirates flies from Dubai to Seattle from Dh5,555 return, including taxes.
The car
Hertz offers compact car rental from about $300 (Dh1,100) per week, including taxes. Emirates Skywards members can earn points on their car hire through Hertz.
The national park
Entry to Mount Rainier National Park costs $30 for one vehicle and passengers for up to seven days. Accommodation can be booked through mtrainierguestservices.com. Prices vary according to season. Rooms at the Holiday Inn Yakima cost from $125 per night, excluding breakfast.
MATCH INFO
Chelsea 1
Alonso (62')
Huddersfield Town 1
Depoitre (50')
Hidden killer
Sepsis arises when the body tries to fight an infection but damages its own tissue and organs in the process.
The World Health Organisation estimates it affects about 30 million people each year and that about six million die.
Of those about three million are newborns and 1.2 are young children.
Patients with septic shock must often have limbs amputated if clots in their limbs prevent blood flow, causing the limbs to die.
Campaigners say the condition is often diagnosed far too late by medical professionals and that many patients wait too long to seek treatment, confusing the symptoms with flu.
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
