Egyptian government aims to reduce inflation rates below 10 percent by end of 2025
Date
10/10/2024 4:00:31 AM
(MENAFN) The Egyptian government, led by Prime Minister Dr. Mostafa Madbouly, aims to reduce inflation rates in the country to below 10 percent by the end of 2025. This ambitious target comes in response to rising inflation levels that have significantly impacted consumers and the overall economy. The government is focused on implementing effective strategies to manage and mitigate these inflationary pressures over the next couple of years.
Recent data from the Central Agency for Public Mobilization and Statistics indicated that annual inflation in consumer prices in urban areas increased to 26.4 percent in September, up from 26.2 percent in August. On a monthly basis, prices rose by 2.1 percent, indicating persistent inflationary trends. Notably, food prices saw a significant jump of 2.6 percent following a 1.8 percent increase in the previous month, with food prices in September up by 27.7 percent compared to the same time last year. This rise in food costs contributes heavily to the overall inflation figures, posing challenges for the government.
Dr. Ashraf Ghorab, an economic expert and Vice President of the Arab Federation for Social Development, expressed optimism that the government could indeed achieve its goal of reducing inflation to below 10 percent by the end of 2025. However, he emphasized that reaching this target will require the implementation of a series of comprehensive measures and considerable effort from all stakeholders involved. He noted the importance of coordinated actions to effectively address the underlying factors driving inflation.
A crucial aspect of these efforts involves the decisions made by the Monetary Policy Committee of the Central Bank regarding interest rates. Dr. Ghorab highlighted that adjusting interest rates—whether by holding them steady or increasing them—should be based on monthly inflation data to help manage inflation effectively. He also pointed out that these actions should align with the U.S. Federal Reserve's decisions regarding interest rate reductions, as such measures can positively influence the inflation situation in Egypt, helping to stabilize the economy and reduce prices over time.
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