Egypt is witnessing successive waves of price increases; This prompted economists to describe what is happening with the price frenzy; Because the price train does not stop, and the prices of goods and services increase on a daily basis, which has turned the lives of Egyptians into an unbearable hell, and made more than 60 million of the total population live below the poverty line, according to the data of the World Bank, meaning they cannot meet their necessary daily needs.
Prices doubled abnormally after Sisi’s decision to liberalize the exchange rate in November 2016. The Egyptian pound depreciated against the dollar and foreign currencies by between 200% and 300%; Consequently, the prices of goods and services increased; For example, the electricity bill for an apartment in which only a family of 4 lives amounts to about 600 EGP, and until 2015 it did not exceed 50 EGP, and this also applies to bills for drinking water and natural gas. In fact, the price of a butane tube increased from 10 EGP to 75 EGP! As for service fees, they rose in an unprecedented way, for example, the national number form reached 70 pounds instead of 15 pounds, in addition to the imposition of a delay fine ranging between 50 and 100 pounds!
The price frenzy left nothing; The prices of apartments and residential real estate have risen so remarkably that a company called “Emaar Misr for Development” has offered nearly 92 villas in its “Marassi” project on the North Coast, in the Sayed Abdel Rahman area, at prices starting from 36 million pounds per villa, and the most expensive price has reached Villa in the project to approximately 111 million pounds.
About this phenomenon, Reuters revealed that prices increased in Egypt during the month of February at rates that the country has not reached in 75 years, noting that inflation rates will continue to increase in the coming months. She confirmed the tendency of the coup government to increase the prices of many commodities such as electricity, gasoline, diesel, water and gas, in addition to expected increases in basic commodities such as rice, oils and sugar, and an increase in value-added tax from 13% to 14%.
thirst the market
On the rise in prices, an official source within the Federation of Chambers of Commerce confirmed that the rise in prices in general and the rise in the prices of food commodities in particular, comes without justification, noting that monopoly and thirst for the market under the slogan of precautionary measures to confront the Corona virus is the reason for raising prices.
The source said that most food commodities increased in prices, although they were witnessing stability during the last period, pointing out that the rise in food commodities prices started with oil and flour, then other commodities were devoured. He explained that the oil crisis came due to the delay in imports as a result of bad weather conditions last April, which traders exploited to raise prices. The source indicated that oil increased by 10% to 15%, and flour increased by 10%; As a result of the increase in global stock exchanges.
In the field of real estate, Tarek Shoukry, Chairman of the Board of Directors of Arabiya Holding Group, said that two years ago, real estate prices increased by 60%, which made many point to the imminent collapse of the real estate market. Shoukry confirmed, in press statements, that the price per square meter in “New Alamein” reached 35,000 pounds, while the average price per square meter was 30,000 pounds in the North Coast.
He pointed out that the rise in real estate prices is a result of the high prices of production inputs such as iron, cement and others, explaining that the price of rent per day in most North Coast projects ranges from 4000 to 10 thousand pounds, while the rental prices of villas range from 10 thousand to 30 thousand pounds.
raw materials prices
Fathi El-Tahawy, Vice President of the Household Appliances and Electrical Appliances Division in the current chamber in Cairo, and a member of the Importers Division, said that the rise in raw materials abroad led to a significant increase in prices in the Egyptian market. Eltahawy added, in press statements, that one of the reasons for the price hike is also the high cost of transportation and shipping, reaching $10,000 instead of $1,200.
He pointed out that plastic materials rose from 40% to 50%, and aluminum rose from 15% to 20%, which led to an increase in household appliances by 7%, and household appliances by 25%.
El-Tahawy stressed that there have been successive rises since the beginning of last April until now in global stock exchanges; Due to the Corona crisis, the production capacity of a large number of factories abroad has decreased.
Wages and salaries
On incomes and prices, Abdul Rahman Khair, a labor expert, stressed that price hikes plague the citizen over and over again, calling for the necessity of commensurate wages and salaries with the increase in prices. Khair said in press statements that the current situation of Egyptian society is a distorted situation, and it must be reviewed and reformed, stressing that the gap is clear between the wages of workers, even in the same institution, and the prices that rise without oversight or taking into account the standard of living of government employees.
He pointed out that the higher the level of the worker’s performance, experience and skills, a rise in the minimum income must follow, explaining that the criteria for setting the minimum income, the most important of which is that this limit is higher than the national poverty line, and it must be less than half of the average wage prevailing in society.
Source: بوابة الحرية والعدالة by fj-p.com.
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