Jakarta –
People in Egypt began to reduce the supply of food due to high prices due to inflation. This is triggered by the war between Russia and Ukraine which has not yet ended.
There was only some food in Hanna Ayyad’s fridge these days. “We can go without eating meat, buy once a month, and we may buy chicken two or three times a month, not like before,” he was quoted as saying. CNNMonday (11/7/2022).
Ayyad, who is also a street fruit seller in Cairo, admits that his daily income has decreased recently because customers can only afford to buy a small portion than usual. If usually the merchandise runs out in one day, now it takes days.
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“In the past there were those who bought 5 kg or 10 kg of fruit, now they can buy a maximum of 1 kg or 2 kg,” he said.
Household purchasing power in Egypt of all income levels are declining rapidly. The economic crisis has raised the prospect of unrest in the country as poorer Egyptians like Ayyad have reduced food supplies.
Egypt’s inflation rate hit 14.7% in June 2022, up from about 5% at the same time last year. Consumers say prices have skyrocketed beyond that figure since Russia’s invasion of Ukraine began in February.
“I used to buy an International brand (cereal) which cost maybe around US$ 4, now it has gone up to US$ 13,” said Haya Aref, a 23-year-old architect. For him, local vegetables are an affordable and healthy option.
The war in Ukraine has brought uncertainty to the global grain market. Egyptwhich relies on Russia and Ukraine for 80% of its wheat imports, is now paying $435 per tonne, from $270 last year.
Credit rating agency Moody’s warned in May of the social and political risks of downgrading Egypt’s economic outlook this year from stable to negative.
(aid/ara)
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