The economic situation in Egypt has improved significantly since the flotation of the Egyptian pound in November 2016 and is showing signs of vigour. On the other hand, household consumption, one of the main drivers of economic activity, is severely constrained by rising prices. Annual consumer price inflation has been running at an average of over 30% since January. Despite the fact that the modern retail sector is expanding rapidly, producers tend to favour traditional distribution channels in order to protect pricing power. In the short term, consumer price inflation is likely to remain elevated.

Source: Daily News Egypt July 10, 2017 14:26 UTC