Egypt hikes subsidised bread price for first time in decades

Egypt hikes subsidised bread price for first time in decades

Madbouly acknowledged the move would be unpopular but emphasised the need to “rationalise the burden on the state treasury to ensure the sustainability of subsidies”.

Of the country’s 106 million people, 71 million benefitted from bread subsidies, he said.

While the official price of a subsidised loaf has remained stable for three decades, consumers report its size has progressively shrunk.

Cairo has been suffering its worst economic crisis for two years, with the currency losing two-thirds of its value and inflation soaring to a record 40 percent last year.

Egyptians, many of whom lived at or below the poverty line before the crisis, have dipped into life savings to cope with rising food prices, which saw over 70 percent inflation last year.

Earlier this year, Cairo received a bailout of over $50 billion in loans and investment deals from the International Monetary Fund, the World Bank and the United Arab Emirates.

These deals included promises of reforms, such as limiting the state’s role in the economy and enacting policies to rein in inflation.

The government has signalled wide-reaching subsidy reforms, including plans to lift subsidies on fuel and electricity.

Recently, officials have reduced fuel subsidies and raised public transportation prices