Egypt: Sisi gov increases price of subsidized bread by 300%

Egypt is set to increase subsidized bread prices by 300 percent from June, impacting millions of impoverished citizens. The price of subsidised bread will rise to 20 piastres, up from five piastres, making up 16 percent of production cost. This move will directly affect around 65 million Egyptians who heavily rely on bread for sustenance.

Economic analyst Maged Mandour warns of a potential rise in poverty rates due to the significant price hike. Historically, changes in bread prices have been sensitive in Egypt, often leading to national uproar. Prime Minister Mostafa Madbouly highlighted the necessity for the change given the country’s production scale and increasing costs.

Sisi’s directives to minimize state budget strain led to this decision. With the country facing a debt crisis, efforts to secure funds are ongoing. However, experts like Mandour point out that the burden is increasingly falling on the poor and middle class.

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