Egypt is unlikely to see a jump in inflation from measures to ease a foreign-exchange shortage because import prices already reflect the black market rate, a senior International Monetary Fund official said.
Egyptian officials are widely expected to devalue the pound and cut energy subsidies to secure a $12 billion IMF loan, needed to fund an economic overhaul they hope will attract foreign investment to Egypt’s ailing economy. But with core inflation -- a key gauge of price increases for non-volatile consumer goods -- at the highest level since 2009, some analyst are warning of a public backlash if they force prices up further.
