A Reuters poll released on Monday predicted that the rate of inflation in Egyptian cities would decline in April from the highest level in five and a half years in the previous month, supported by currency stability and falling prices. raw material.
The median forecast from 13 analysts polled by Reuters found that the annual rate of urban consumer price inflation would fall to 31% in April from 32.7% in March.
The rise in inflation was driven by a 54.7% year-on-year increase in food and drink prices in April.
Egypt, heavily dependent on imports, is suffering from rising prices of goods and services due to the rise in the price of the dollar and the devaluation of the pound, and difficulties in ensuring flows in dollars, with the delay in the first review of the International Monetary Fund program which was scheduled for mid-March, at a time when credit rating institutions indicate high financing risks for Egypt with its future needs.
Egypt is betting on a SOE offering program that includes 32 companies.
Due to funding risks, Standard & Poor’s revised Egypt’s outlook from stable to negative, while Fitch downgraded Egypt’s credit rating from B+ to B with a negative outlook.
Moody’s also placed Egypt’s foreign and local currency issuance rating at B3 on review for downgrade, attributing this to slower-than-expected progress in selling assets held by Egypt. Egyptian state.
The urban inflation rate increased on a monthly basis in April by 1.7%.
The monthly inflation rate in cities increased in March by 2.7%.
According to Reuters forecasts, the rate of inflation recorded in April will be lower than the highest rate for five and a half years recorded in March.
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