Source: Atlantic Council
Author(s): Mohsin Khan, Elissa Miller
Over the past decade or so, Egypt has consistently experienced relatively high rates of inflation. But since the advent of the Arab Spring in 2011, the increase in consumer prices steadily accelerated. During 2011-2015, the average rate of inflation was close to ten percent a year, which was well above the corresponding rate of six to seven percent a year in the MENA region as a whole. Many factors are at play here in causing inflation to rise: increased oil prices worldwide, food price increases, growing fiscal deficit, and rapid increase in the money supply.
The picture changed dramatically in 2016-2017 with inflation moving to a new high. The twelve month inflation rate rose from ten percent in January 2016 to over thirty percent in April 2017. The proximate cause of this sharp increase was the exchange rate….
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