Egypt's government, fighting record inflation, has agreed with private producers and retailers to cut prices on staple foods by 15-25% as of Saturday and exempt them from customs duties for six months, the prime minister said on Monday.
The foods include fava beans, lentils, dairy products, cheese, pasta, rice and sugar as well as chicken and eggs, Mostafa Madbouly said after a meeting with ministers. Retail chains had agreed to forego profits on these products.
September headline inflation, due to be announced on Tuesday, is expected to climb to a record high ahead of a presidential election scheduled for mid-December. Analysts polled by Reuters forecast September inflation of 37.6%.
The government would monitor implementation of the price reductions, the supply minister added, without saying how they would be enforced.
The government would also speed up customs procedures and clearances at ports, while banks had agreed to help food producers obtain foreign inputs, the ministers of finance and supply said.
Manufacturers have complained that a lack of foreign currency has limited their ability to import, forcing them to cut back on production.
Madbouly said private producers had agreed to write their prices on their products and make them available in large quantities in retail chains.
