Egypt sets to fight inflation
In the bid to arrest the situation of the current inflation in price that has engulfed Egypt, the Government of Egypt is stepping in to help it by pumping $2.49 billion for income tax discounts, bonuses for state employees, increased pension payments and cash subsidies for lower and middle income Egyptians.
As at April 2017, the inflation rate as risen to 31.5 percent. This figure according to experts is the highest inflation rate since June 1986. In a release from the Central Agency for Public Mobilization and Statistics (CAPMAS), the highest record was in 1986 when the inflation rates had recorded 35 percent.
It is really unfortunate that the inflation has caused a build up in the prices of Food and Beverages, Housing, Electricity Water, Medical care charges and others. This however has translated into undue hardship for citizens -especially the middle class and low income earners.
The cabinet announced that the $2.49 bn set aside to address this situation will take effect from the 1st of July, 2017. It is said to defuse discontent over steep prices hike for food, medicine and other services in line. There is hope that the situation of things will change gradually and that there will be a significant improvement of the economy with time.