Egypt's PM says prices of basic commodities to decline up to 30 pct
CAIRO, April 18 (Xinhua) -- Egyptian Prime Minister Mostafa Madbouly announced Thursday that an agreement had been reached to reduce the prices of basic commodities in the country by up to 30 percent.
"In the period before the Eid Al-Fitr holiday (earlier this month), it was agreed with the Federation of Egyptian Chambers of Commerce that the price reductions should be between 15 percent and 20 percent and would continue to reach about 30 percent," the Egyptian prime minister told a press conference following a meeting with concerned officials and private sector representatives.
He noted that the prices of commodities in general have already been declining by about 22 percent and those of basic commodities by up to 27 percent.
Madbouly announced that the prices of unsubsidized bread are expected to decline on Sunday, given the decline of flour prices globally and the recent stability of the U.S. dollar exchange rate in Egypt.
Over the past two years, the dollar shortage in Egypt has led to the devaluation of the local currency and the rise of the parallel market in the country, causing high inflation and plunging the country into one of its worst economic crises.
The crisis deepened after the Israel-Hamas conflict broke out in October last year, impacting Egypt's tourism sector and halving its revenues from the Suez Canal.
However, Egypt has recently seen a large foreign cash influx after it signed in late February a 35-billion-dollar investment deal with the United Arab Emirates to develop a new resort city, Ras Al-Hekma, on Egypt's northern coast.
Later, in March, the World Bank announced more than 6 billion dollars "to support Egypt's development and reform efforts," while the European Union said it would provide a financial package of 7.4 billion euros (about 7.88 billion dollars) to bolster the Egyptian economy.
Also in March, the International Monetary Fund approved an additional 5-billion-dollar funding to Egypt besides the 3-billion-dollar, 46-month funding approved in late 2022 to support the country's reforms.