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Inflation in Egypt hits 19.2 % for first time in 5 years

People walk past the Egyptian Central Bank in downtown Cairo on 3 November 2016. [KHALED DESOUKI/AFP via Getty Images]
People walk past the Egyptian Central Bank in downtown Cairo on 3 November 2016 [KHALED DESOUKI/AFP via Getty Images]

The overall annual inflation rate in Egypt jumped to 19.2 per cent last month, its highest level since November 2017, according to data from the state-run Central Agency for Public Mobilization and Statistics (CAPMAS).

Data released by CAPMAS on Thursday shows that the country's monthly inflation rate was 2.5 per cent in November.

The sharp rise in inflation was driven by the Central Bank of Egypt's decision in November to devalue the Egyptian pound against the US dollar. $1 US was equal to 24 Egyptian pounds in November compared to an average of 18.5 pounds in October.

The decline of the Egyptian pound against the US dollar sent the prices of imported goods up and caused a partial erosion of Egyptians' savings due to inflation.

Egypt is close to obtaining a $3 billion loan from the International Monetary Fund (IMF). The loan is expected to be approved and its first tranche released by the second half of this month.

READ: Egypt's online invoicing will marginalise pro bono medical treatment

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