Egypt Sees Inflation Persisting as It Boosts Aid for the Poor
- Inflation to average 22.8 percent in fiscal year starting July
- Budget deficit in July-March period dropped to 8% of GDP
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Egypt expects inflation to remain above 20 percent next year, as authorities plan an aid package to help lower-income citizens cope with the price surge resulting from the steep weakening of the pound over the past seven months.
The planned “social package” to be announced soon, will target public servants, low-income tax payers and recipients of food subsidies, Deputy Finance Minister Ahmed Kouchouk said in an interview in the resort town of El Gouna on Tuesday. Kouchouk said inflation will average 22.8 percent in the fiscal year starting July 1, a significant revision of the 15.2 percent he estimated in March. The rate will ease to 9.7 percent in the following fiscal year, he said.