Egypt is on the verge of having its worst-ever inflation rate

Egypt's annual urban consumer inflation rate rose to 32.7% year on year in March, falling just short of a record high of 31.9% in February, according to figures released on Monday by the country's statistics agency CAPMAS. The rising inflation rate is the result of a series of currency depreciations that began in March 2022, a prolonged lack of foreign currency, and ongoing delays in importing goods into the country. Egypt, which received a $3 billion loan from the International Monetary Fund in December, has seen its currency depreciate by half since March 2022, owing to the fallout from Russia's invasion of Ukraine, which exposed flaws in the Egyptian economy. "The latest rate increase cannot succeed where previous ones failed because our government pursues an expansionary policy rather than a contractionary one," Alia al-Mahdi, former dean of Cairo University's School of Economics and Political Science, stated. Egypt is currently one of the five African countries facing the most serious debt crises in 2023. Inflation, rising borrowing rates, and a strong dollar have made it difficult for Egypt and a few other countries to repay loans and generate funds, causing the North African country to suffer economic consequences.