Cairo – Mubasher: Finance minister Mohamed Maait projected Egypt’s inflation rate to slightly rise temporarily next month, according to Enterprise.
The North African nation's core inflation is likely to range between 13% and 14% this month, economist at Arqaam Capital Reham El-Desouki told Shorouk News.
She added that the monthly inflation rate will range between 2% and 3%.
The Egyptian government had raised fuel prices by 50% during the Eid Al Fitr holiday, a three-day Muslim festival marks the end of the fasting month of Ramadan.
The increase in fuel prices was necessary to save nearly EGP 90 billion of the fuel subsidy cost in fiscal year 2018/2019, Maait said in a statement.
Total fuel subsidies amount to EGP 89.1 billion in FY18/19 budget, compared to EGP 110.2 billion in the current fiscal year.
Slashing fuel subsidies will enable the government to provide the required financing for social solidarity and protection programmes, Maait added.
He noted that FY18/19 budget will finance several programmes for subsidies at a total value of EGP 334 billion, including EGP 100 billion as subsidies for bread and ration card goods.
This step will also allow the government to boost expenses on healthcare and education, the minister pointed out.
