Arab Today, arab today egypt fuel price hikes fan inflation fears
Last Updated : GMT 05:15:37
Arab Today, arab today
Arab Today, arab today

due to government austerity measures

Egypt fuel price hikes fan inflation fears

Arab Today, arab today

Arab Today, arab today Egypt fuel price hikes fan inflation fears

An attendant counts cash at a petrol station in Cairo
Cairo - Arab Today

Hisham Gaber had been preparing his wedding for months, but started to have second thoughts as inflation in Egypt rocketed due to government austerity measures, including sharp increases in fuel prices.

"Marriage and handling the additional burdens in these conditions have become an unsound decision," said the 28-year-old engineer.

The government on Thursday announced an increase in fuel prices of up to 55 percent, the second since November when it also floated the currency in an IMF-backed reform programme, which fuelled inflation.

Analysts believe the fuel price rises will further increase inflation although it was announced to have decreased in May to an annual rate of 30.9 percent, from 32.9 percent the previous month.

"Prices are still rising but not as sharply as before," said Amr Adly, an analyst with the Carnegie Middle East Center.

Radwa El Sweify, an analyst with Pharos Holding for Financial Investments, believes that inflation will spike.

"Inflation over the next two months may rise to 34-36 percent but the rate of inflation in the last two months of this year will be less than the same period last year when the pound was floated," she said.

The pound has depreciated sharply from 8.8 per dollar to 18 -- following its flotation, which came after the International Monetary Fund agreed a $12 billion loan disbursed over three years.

The move, in a country that relies on imports, drove inflation to a record high in April.

"The exchange rate is key to price fluctuations in a country where food and medicine make up more than 40 percent of imports," said Adly.

-'Prices have tripled'-

The government has announced a raft of measures to protect low income Egyptians, saying it boosted social spending to 75 billion pounds ($4.1 billion).

About 28 percent of Egypt's 90 million people are poor, according to official figures from 2015.

But government social spending will cover only between 40 percent and 50 percent of the recent price hikes, said El Sweify.

"The government doubled social spending, but prices have tripled," she said.


With the latest fuel increases that affect transport costs, the prices of vegetables and fruits may rise by between 20 and 25 percent, said Omar El Shenety, the founder of Multiples Group, an investment firm.

Prime Minister Sharif Ismail said the fuel subsidies were straining government financing.

The projection for next year at the same levels "is 150 billion pounds. This is a big number that neither the oil sector nor the budget can handle," he said at a press conference.

But despite widespread consternation among Egyptians, it is unlikely that the soaring cost of living will lead to unrest, El Shenety said.

"The government's conviction that there will not be a backlash by people allowed it to make these reforms forcibly," he said.

Economic grievances had fuelled the 2011 uprising that overthrew veteran strongman Hosni Mubarak, ushering in years of unrest that decimated tourism and investment.

Many Egyptians now are weary of further unrest, while the government shows little tolerance for dissent, having jailed thousands of Islamists and secular dissidents over the past few years.

President Abdel Fattah al-Sisi, the former army chief who toppled his Islamist predecessor Mohamed Morsi in 2013, has said the country has no choice but to undertake the tough economic reforms his predecessors had put off, fearing unrest.

Source: AFP

arabstoday
arabstoday

GMT 18:43 2017 Saturday ,23 September

Discusses ways to apply pre-screening

GMT 06:26 2017 Thursday ,21 September

Qatar hits 5-year low as diplomatic rift hit

GMT 14:39 2017 Tuesday ,19 September

Catherine proud for contract with Morocco

GMT 20:39 2017 Wednesday ,13 September

Al Shamri calls for supporting the Islamic

GMT 03:58 2017 Wednesday ,13 September

Saudi is ready to expand production cuts

GMT 09:43 2017 Sunday ,10 September

Workplace safety key concern

GMT 18:47 2017 Sunday ,03 September

Diplomat underlines importance of visit

GMT 17:39 2017 Saturday ,02 September

Minister underlines support for OPEC cut deal
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today egypt fuel price hikes fan inflation fears Arab Today, arab today egypt fuel price hikes fan inflation fears

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today egypt fuel price hikes fan inflation fears Arab Today, arab today egypt fuel price hikes fan inflation fears

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today unveils Joon - the 'millenials' airline

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iran tests new medium-range missile

GMT 21:24 2017 Saturday ,23 September

Iran tests new medium-range missile
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today Designer produced new set of ornaments

GMT 18:29 2017 Sunday ,03 September

Designer produced new set of ornaments
Arab Today, arab today Saudi witnessing a remarkable growth

GMT 09:57 2017 Saturday ,23 September

Saudi witnessing a remarkable growth
Arab Today, arab today Egyptian artist presents new collection of designs

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs
Arab Today, arab today US-made bomb used in fatal strike

GMT 10:16 2017 Saturday ,23 September

US-made bomb used in fatal strike
Arab Today, arab today Equifax executives step down

GMT 16:16 2017 Saturday ,16 September

Equifax executives step down
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Big Western brands polluting oceans

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 09:40 2017 Tuesday ,19 September

Actress Ream Hhagag prepares for a new film

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:29 2017 Tuesday ,29 August

Yomna: decoration leaved positive effects

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 14:44 2017 Monday ,29 May

Al-Jeddawi presents décor ideas for Ramadan

GMT 08:39 2017 Friday ,22 September

New Hurdles as Republicans Rush

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 06:49 2017 Friday ,22 September

O'Leary: Could ground more planes

GMT 11:29 2017 Thursday ,21 September

Lufthansa chief eyes up to 78

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday