Egypt Daily Update: Annual Inflation Reaches New High in July

August 10, 2017

Annual Inflation Reaches New High in July

Al-Sisi Attempts to Appease Al-Warraq Residents

Parliamentary Speaker Calls for Amendments to 2014 Constitution

Cartoon of the Day: Increase in Water Prices

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Annual Inflation Reaches New High in July

The annual inflation rate in Egypt increased [Ar] to 34.20 percent year-on-year in July from the June 2017 rate of 31.94 percent, according to a statement [Ar] by the Central Agency for Public Mobilization and Statistics (CAPMAS) today. The urban annual inflation rate increased in July to 33 percent, the highest level in decades. Food and beverage prices rose by 43 percent, and “culture and entertainment” rose by 47 percent. The report also stated that housing, water, electricity, gas, and fuel prices rose by 10.2 percent, prices for transport rose by 36.7 percent, and health care rose by 24 percent. Reham al-Desouky, senior economist at Arqam Capital, told Mada Masr that he expects urban inflation to remain around 33 percent in the coming two months due to seasonal factors, as well as further hikes in electricity, tobacco, water, and tobacco prices.

The IMF has stated that they expect inflation in Egypt to average 22.1 percent in the current fiscal year ending June 30, 2018 assuming continued compliance with IMF guidelines. Egypt has faced quickly increasing inflation rates since floating the Egyptian pound last November and imposing austerity measures over the last year.


Al-Sisi Attempts to Appease Al-Warraq Residents

The head of the Armed Forces’ Engineering Authority Kamel al-Wazeer told residents of al-Warraq Island on Tuesday that there are no plans to evict them a month after one person was killed and dozens injured in clashes [Ar] between residents and police on the island over demolition orders for 700 buildings. Mosaad Hamed, a resident of the island, told Mada Masr that al-Wazeer said the plan is to develop the island without evicting the residents while meeting with a number of residents at his office. President Abdel Fattah al-Sisi reportedly addressed the residents via speakerphone during the meeting, saying that “we are here to serve you, we are not against you. You are our children and family. It is not possible to evict you. But we want to develop the island.” Residents of al-Warraq have submitted a list of demands to al-Wazeer, including demanding the release of 17 citizens detained during the clashes and demanding compensation for the family of Sayed Hassan al-Gizawy, who was killed by police during the clashes.


Parliamentary Speaker Calls for Amendments to 2014 Constitution

Parliamentary Speaker Ali Abd al-Aal called [Ar] for amendments to the 2014 constitution on Wednesday, saying that the document was drafted at a time of state instability. Abd al-Aal argued that it is unacceptable that the constitution blocks the president from arbitrarily dismissing ministers from office. Abd al-Aal also argued against the ban on Egyptians who hold dual citizenship from running in the presidential elections or being members of the House of Representatives. Abd al-Aal himself played a key role in drafting the original document.


Cartoon of the Day: Increase in Water Prices

In hand: “Bill”
Family: “We don’t want it!’
Doaa el-Adl – Al-Masry Al-Youm – 08/07/2017


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