Downside to currency move
EGYPT’S urban consumer prices rose the fastest in at least six years last month, fuelled in part by a 28.3 percent rise in food costs after the central bank’s decision to abandon currency controls two months ago.
Annual urban inflation accelerated to 23.3 percent, the state-run statistics agency, Capmas said in an announcement yesterday.
The government said the November 3 decision to free the exchange rate was imperative to revive the country’s economy, but it has created new hardships for the country’s 92 million people, about half of whom live near or below the poverty line. – Bloomberg