How do inflation rates affect the prices of Eid cakes in Egypt?

There are a number of factors that affect prices Holiday's candyIncluding higher prices Raw materials The basics that go into it Candy industrylike Flour Sugar and oil, a group that recorded a notable increase as a result of the high cost of production and distribution and in light of broader economic pressures, amid positive indications of possible declines in prices in the coming period.

This is combined with the high cost of other factors related to services and labor And electricity And fuelIt is the cost that is ultimately borne by the consumer and is reflected in the final price of the commodity.

This also comes in light of the high cost of importing raw materials used in the candy industry, which negatively affected their final prices.

While Egypt recently witnessed a widespread sugar crisis, which finally found its way to a solution after government measures, including extending the sugar export ban, and the Council of Ministers’ approval – last March – to import one million tons of sugar during the current year, many citizens still feel the depth of… Sugar crisisWaiting for these efforts to bear broader fruition in terms of complete market stability.

Says the head of the sugar and candy division in the room Food Industry At the Federation of Industries, Hassan Al-Fandi, in special statements to the “Eqtisad Sky News Arabia” website, said that the Egyptian markets are not currently suffering from a sugar crisis as was the case a while ago, pointing out that sugar has been provided by the state throughout the republic, in addition to a decrease in Price per ton (..).

He confirms that Food industries sector in Egypt He was not affected by the sugar crisis from the beginning, especially since Egyptian Ministry of Supply It provided sugar to companies and factories that were operating and had a commercial register and a tax card.

He added: But in general, the market is still affected by the economic measures taken by the state recently, including liberalizing the exchange rate and the rise of the dollar against the pound.

Eid cake prices in Egypt

As Eid al-Fitr approaches, the Egyptian market is witnessing a moderate demand for buying sweets, whether through government outlets or private sector outlets at all levels.

The prices of different cakes and Eid sweets vary according to outlets, quality and type, while the government, through its sales outlets, has offered packages at reduced prices starting at 95 pounds for a kilo of “plain” cakes, 140 pounds for a kilo of “milk cakes,” and 210 pounds for cakes with nuts through the Greater Cairo Bakeries Company and its branches. affiliated with it. While the average prices outside government outlets reach about 250 pounds for a kilo of plain cakes, and 230 pounds for mixed packages (cakes and biscuits) weighing one kilogram.

In a related context, Ashraf Hosni, a member of the Board of Directors of the Foodstuffs Division of the Cairo Chambers of Commerce, confirms that the relatively high prices of Eid al-Fitr sweets are due to several reasons: The most prominent are the “cost elements” that are divided into fixed and variable costs, where fixed costs are distributed over the number of units produced.

He added in exclusive statements to the “Eqtisad Sky News Arabia” website: The market in general is suffering from a significant increase in prices, which is financially exhausting the citizen. Which ultimately led to a decrease in demand for goods (..).

He points out that the rise in the prices of Eid sweets is not limited to the price of sugar only; Rather, the general price rise and market fluctuations are due to the liberalization of the exchange rate, which cast a shadow on rental and storage prices, salaries, energy prices, fuel, electricity, taxes, and more.

On the sixth of last March, the Central Bank of Egypt announced the liberalization of the exchange rate. The Bank's Monetary Policy Committee also decided Egyptian Central Bank – In an extraordinary meeting – he raised the overnight deposit and lending rates and the central bank’s main operation rate by 600 basis points to reach 27.25 percent, 28.25 percent and 27.75 percent, respectively.

He confirms that the sugar crisis that the Egyptian market witnessed recently was the result of a decrease in imported quantities as a result of the shortage of hard currency, noting that the increasing demand for sugar made the state depend on additional imports to fill the gap between local production.

  • The general urban consumer price index, which was announced by the Central Agency for Public Mobilization and Statistics on March 10, 2024, recorded a monthly rate of 11.4 percent in February 2024, compared to a rate of 6.5 percent in the same month of the previous year and a monthly rate of 1.6 percent in January 2024. The annual rate of general inflation was 35.7 percent in February 2024, compared to 29.8 percent in January 2024.
  • The core consumer price index, prepared by the Central Bank, recorded a monthly rate of 13.2 percent in February 2024, compared to a monthly rate of 8.1 percent in the same month of the previous year and a monthly rate of 2.2 percent in January 2024. Annual rate of inflation Basic 35.1 percent in February 2024 compared to 29.0 percent in January 2024.

Strict government measures

In a related context, the economic expert, Sayed Khadr, said in exclusive statements to the “Eqtisad Sky News Arabia” website, that Egyptians use different tricks to get out of economic crises, in terms of saving expenses (..).

Among these tricks that many families resorted to was making candy at home as an economical and suitable option for many families. However, the sudden rise in the prices of basic materials such as flour, sugar and oil led to a significant increase in the cost of preparing candy at home. This increase in cost has made many families face additional financial difficulties, leading in some cases to having to abandon this traditional habit or reduce the size and variety of sweets prepared at home.

With increasing economic pressures on families, relying on making sweets at home as a means of saving money has become more difficult, making many families look for other alternatives to celebrate Eid al-Fitr in a way that suits their financial capabilities.

Returning to Khader’s talk, he explains that the crises that the Egyptian markets are witnessing at the present time are due to many reasons. The most important of them are: high inflation rates and increased demand for strategic goods, in parallel with the decline in average per capita income.

It also highlights at the same time the tendency of many merchants and manufacturers to monopolize basic commodities, as happened in the sugar crisis, which is one of the most important strategic commodities for the citizen, especially before the Eid al-Fitr season, pointing to the complete absence of real control over the market, and the state of lawlessness and random pricing. For goods.

The economic expert also explains that although Egypt was approved to import about one million tons of sugar during the year, so far we have not seen the markets being flooded with sugar and achieving a balance in the price level as required.

Source link

Similar Articles



Please enter your comment!
Please enter your name here


Most Popular