Rising inflation
Egypt’s annual inflation rate increased to 7.3 per cent in January compared to 5.9 per cent in December. According to analysts, the hike came on the back of unfavourable base effects, which means that the rate of price increases in January last year was less and thus the comparison would naturally give a higher value.
The upward adjustment in the prices of some subsidised food items, in addition to the effects of the last cold wave on vegetable prices, have also contributed to the rise, according to Prime Securities. The government hiked the prices at which it sells subsidised sugar by 25 per cent in late November and raised the price of cooking oil twice over the course of last year to reach LE25 per litre compared to LE17 in May.
Vegetables recorded the highest rate of increase in prices among other food items, surging by 17 per cent year-on-year.
Prime Securities expects inflation rates to remain within the bracket targeted by the Central Bank of Egypt (CBE) of between five and nine per cent and believes that the CBE will not change interest rates during its upcoming meeting in March.
“Global commodity headwinds remain key upward risks, and the spillover effect of a hawkish US Federal Reserve policy is expected to become more pronounced by the second quarter of 2022. Thus, an extended hold-rate decision should be enough for now to rein in inflation expectations,” a research note said.
The Federal Reserve is expected to increase interest rates in the US several times this year, a move that would result in similar decisions by the CBE as the pound is pegged to the US dollar. The CBE kept interest rates on hold without any change during its last nine periodical meetings.
EGYPS inaugurated
PRESIDENT Abdel-Fattah Al-Sisi on Monday inaugurated the fifth edition of the Egyptian Petroleum Show 2022 (EGYPS 2022), held from 14 to 16 February. The conference targets national and international oil companies along with prominent government officials, business leaders, local and multinational corporations and petroleum industry experts. The conference saw the participation of representatives from the Organisation of Petroleum Exporting Countries (OPEC), the Organisation of Arab Petroleum Exporting Countries (OAPEC), the International Energy Agency (IEA), the Eastern Mediterranean Gas Forum (EMGF), African Petroleum Producers Organisation (APPO), the World Energy Forum and the Mediterranean Energy Observatory. A number of strategic and technical conferences were hosted during the event. The show also featured three energy awards ceremonies that celebrate outstanding achievements in the field. The EGYPS is the largest oil, gas and energy conference across Egypt, North Africa and the Mediterranean. Egypt has made a series of significant oil and gas discoveries in recent years, most notably the giant Zohr gas field.
COP27 preparations
Foreign Minister Sameh Shoukri met on Monday with the executive secretary of the UN framework convention on climate change Patricia Espinosa in the German city of Bonn as part of Egypt’s preparations to host COP27 in November 2022. Shoukri’s visit aims to mobilise the necessary momentum for the success of COP27, scheduled to be held in Sharm El-Sheikh, said Ahmed Hafez, the ministry spokesperson. Egypt plans to build on the outcome of the COP26 that was held in Glasgow last year, Hafez noted. Egypt is drawing up plans to help confront climate change by speeding up the transition to a green economy, reducing emissions and financing climate-oriented projects. In preparation for the COP27 event, the government will start upgrading Sharm El-Sheikh’s roads and services and converting public transportation in the city to operate on natural gas instead of diesel fuel.
Egyptian joins MENAT
THE SHORT-FORM video platform TikTok has set up the first safety advisory council for the Middle East, North Africa and Turkey (MENAT), with Egyptian academic Naila Hamdi as one of the council’s six members. A similar council was launched in the US in March 2020, followed by one in the Asia-Pacific region in September of that year, and another in Europe in March 2021. Bringing together experts from academia and civil society, the MENAT council will provide subject matter expertise and advice on the platform’s content, moderation policies and practices. They will also work with TikTok to develop safety strategies in the region. “We are glad to be collaborating with such esteemed experts who are lending us the benefit of a wide variety of perspectives that reflect the diverse nature of our platform and community,” Farah Tukan, head of public policy for TikTok in the Middle East, Turkey, Africa and Pakistan, said.
*A version of this article appears in print in the 17 February, 2022 edition of Al-Ahram Weekly.
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