Egypt’s August inflation reaches 7-year high of 15.5%

According to media sources, Egypt’s annual inflation reached its highest level in at least seven years at 15.5% in August, according to a Bloomberg report which began tracking inflation data for the country in 2009. Economists cited the depreciating Egyptian pound against the US dollar and rising electricity prices as the reason for the high inflation rate in August.

Data from the state run agency CAPMAR shows that consumer prices increased by 1.9% on a monthly basis. Food and beverage prices also posted monthly and yearly increases in August, respectively at 1.6% and 19.3%.

Egypt’s government has been trying to clear an International Monetary Fund loan worth $12 billion, however, part of the package includes a new value-added tax which is expected to add to inflation figures. The government has promised economic reforms to stimulate the economy which has been struggling since 2011.