Ahmed Kamel – Egypt Daily News
Inflation in Egypt accelerated for the second consecutive month in March, as rising energy prices and currency pressures linked to the Iran conflict pushed the cost of living higher across the country.
Official data released by the Central Agency for Public Mobilization and Statistics showed annual urban inflation reaching 15.2% in March, up from 13.4% in February. On a monthly basis, prices rose by 3.2%, compared with 2.8% the previous month.
The renewed inflationary pressure comes amid a weakening Egyptian pound, which has lost roughly 10% of its value since the outbreak of the conflict. According to estimates by Moody’s, foreign investors have withdrawn around $8 billion from local debt markets, adding further strain on the currency.
A weaker pound has made imports more expensive, intensifying inflation in a country heavily reliant on foreign goods, particularly in the energy sector.
At the same time, the government has implemented multiple fuel price increases, with gasoline and gas costs rising between 14% and 30% in the latest adjustment the third hike within a year. These increases have fed directly into higher transportation and production costs.
Public transport has also become more expensive, with railway ticket prices and some Cairo metro fares rising by as much as 25%. Electricity tariffs have climbed sharply as well, with increases for commercial users ranging from 20% to 91%, and residential rates rising between 16% and 28% starting in April.
External pressures are compounding the situation. Egypt is facing challenges in securing foreign currency, alongside signs of slowing tourism and a decline in shipping activity through the Suez Canal, both key sources of national income.
Although inflation remains well below its peak of 38% recorded in September 2023, analysts warn that continued regional instability could push prices higher again, complicating efforts by policymakers to stabilize the economy.
