Egyptian prices reportedly rose by over 37% in August compared to the beginning of the year, another dismal record for the country that has been stricken with economic woes for years.

Inflation in Egypt stood at 37.4%, up from 36.5% during the previous month, according to the state-run CAPMAS statistics agency on Sunday.

The single largest contributor to the rise was a whopping 71.4% increase in the cost of food and beverages.

Last December, Egypt’s economy was promised a rescue program in the form of a $3 billion loan by the International Monetary Fund, but as Egyptian authorities haven’t carried out the necessary reforms, the IMF delayed making the transfer.

The country so far has failed to reach the $2 billion target in foreign deals to increase the necessary foreign currency buffer to cope with the depreciation expected.

The failure came despite efforts by Egypt to sell state assets ranging from banks to power plants and a military-owned network of gas stations, Bloomberg reported in May.

In June, Egyptian President Abdel Fattah el-Sisi warned about the impact of currency devaluations on rising prices and said the Middle East’s most populous nation, with over 100 million people, won’t be able to tolerate much more weakening of the pound.

“Egypt’s interest rates are too low to attract foreign capital, despite a surprise hike in August,” Bloomberg’s Chief Emerging Market Economist Ziad Daoud said.

“Global yields provide competing returns at a lower risk. High inflation has pushed Egypt’s real rates to be among the lowest in emerging markets. And the risk of devaluation could wipe out interest-rate gains,” Daoud added.

Egypt’s year-long economic crisis was kickstarted by the Russian invasion of Ukraine in February 2022, which destabilized global markets and supply networks.

Investors then pulled billions out of Cairo’s foreign reserves, which remain buoyed by deposits from wealthy Arab Gulf nations whose promises to purchase Egyptian state assets have fallen short of the country’s targets, according to news site France24.

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