IMF Expects Egypt Inflation to Ease When Reform Impact Wears Off
- Consumer prices were expected to rise for several months: IMF
- Egypt’s annual inflation rate rose to 28.1% in January
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The International Monetary Fund said it expects Egypt’s inflation, which surged to almost 30 percent in January, to ease once the impact of measures including the floating of the currency wears off.
Prices have surged since Egypt reduced fuel subsidies and removed exchange rate restrictions in November, steps that were key to secure a $12 billion IMF loan agreement. The pound has since lost about half of its value. Inflation in urban areas accelerated at an annual rate of 28 percent in January.