Egypt's inflation rate in February is 'highest in five years' for second month

Egypt's annual headline inflation soared in February to reach 31.9 per cent compared to 26.5 per cent the previous month to mark, once again, the highest in five years.

Such spike has been attributed to the rise in the prices of bread and grains by 9.2 per cent, poultry and meat by 29.7 per cent, seafood by 19.5 per cent, and dairy products by 11.1 per cent, local news outlet Ahram online reported on Thursday, citing the Central Agency for Public Mobilisation and Statistics (CAPMAS).

The prices of food and beverages have increased by 61.5 per cent, entertainment and cultural activities by 40.9 per cent, restaurants and hotels by 50.3 per cent and healthcare services by 16.8 per cent, the report added.

The country's economy has been hit hard by the Covid-19 pandemic and the Ukrainian-Russian war, factors that further disrupted global markets and hiked oil and food prices worldwide.  

Over the past months, the prices of basic commodities, mostly imported, witnessed unprecedented hikes which put low and average-income households in a dire situation.

The Egyptian pound has been struggling against the US dollar leading prices to soar. One US dollar is valued at 30.88 EGP at the time of publishing.

Egypt is also the world's largest wheat importer, most of which is imported from Russia and Ukraine at a time when the country's supply is subject to price changes in the international market.