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Egypt Inflation Jumps to Five-year High in November

Two Egyptian women shopping in the streets of Cairo (EPA)
Two Egyptian women shopping in the streets of Cairo (EPA)
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Egypt Inflation Jumps to Five-year High in November

Two Egyptian women shopping in the streets of Cairo (EPA)
Two Egyptian women shopping in the streets of Cairo (EPA)

Egypt's annual urban consumer inflation rate rose from 16.2 percent in October to 18.7 percent in November, the country's Central Agency for Public Mobilization and Statistics (CAPMAS) said Thursday.

The inflation hike in November marks the highest increase since December 2017, when it reached 21.9 percent.

Egypt's annual headline inflation rate rose to 19.2 percent in November 2022, compared to 16.3 percent in the previous month.

On a monthly basis, the agency said that the general consumer price index for the total republic increased by 2.5 percent in November from October.

CAPMAS attributed the annual increase in the inflation rate for the entire republic to the increase in prices in sectors, foremost of which were: Food and beverages 30.9 percent, health care 12.4 percent, transport, and communications 16.6 percent, culture and entertainment sector 32.2 percent, and restaurants and hotels sector 30.1 percent.

In a press conference following the Cabinet's weekly meeting in the New Administrative Capital, Egyptian Prime Minister Mostafa Madbouly said that there is a plan to provide hard currency and it will run on the short term until 30 June 2023.

The premier did not give further details of the plan, saying that some of the state's steps must not be announced in advance.

He revealed that the government is aware that there is a rise in prices and it attempts to alleviate the burden placed on the shoulders of the citizens.

Madbouly confirmed that the cabinet has set a plan to deal with the increasing prices, highlighting that most of the news spreading on social media “seek to harm the Egyptian economy”.

Meanwhile, the premier said on Wednesday that Egypt attracted about $9 billion in direct investments last year - the highest in 15 years.

“The state ownership policy document was finally approved,” Madbouli announced, stating that the government will be committed to implementing the state ownership policy document over the next three or five years.

He added that the investor, who wishes to obtain the golden license, applies directly to the Cabinet to shorten the distance and procedures.

Madbouly further announced that a committee has been formed to tackle the investors’ difficulties, noting that several measures and reforms were made to enhance the investment climate.

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Trump Exempts Mexico Goods from Tariffs for a Month, but Doesn’t Mention Canada

Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)
Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)
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Trump Exempts Mexico Goods from Tariffs for a Month, but Doesn’t Mention Canada

Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)
Construction workers are seen on the site of a new development in Long Beach, California, March 5, 2025. (AFP)

US President Donald Trump on Thursday said Mexico won't be required to pay tariffs on any goods that fall under the United States-Mexico-Canada Agreement on trade until April 2, but made no mention of a reprieve for Canada despite his Commerce secretary saying a comparable exemption was likely.

"After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement," Trump wrote on Truth Social. "This Agreement is until April 2nd."

Earlier on Thursday, US Commerce Secretary Howard Lutnick said the one-month reprieve on hefty tariffs on goods imported from Mexico and Canada that has been granted to automotive products is likely to be extended to all products that comply with the US-Mexico-Canada Agreement on trade.

Lutnick told CNBC he expected Trump to announce that extension on Thursday, a day after exempting automotive goods from the 25% tariffs he slapped on imports from Canada and Mexico earlier in the week.

Trump "is going to decide this today," Lutnick said, adding "it's likely that it will cover all USMCA-compliant goods and services."

"So if you think about it this way, if you lived under Donald Trump's US-Mexico-Canada agreement, you will get a reprieve from these tariffs now. If you chose to go outside of that, you did so at your own risk, and today is when that reckoning comes," he said.

Nonetheless, Trump's social media post made no mention of a reprieve for Canada, the other party to the USMCA deal that Trump negotiated during his first term as president.

Lutnick said his "off the cuff" estimate was that more than 50% of the goods imported from the two US neighbors - also its largest two trading partners - were compliant with the USMCA deal that Trump negotiated during his first term as president.

Canadian Prime Minister Justin Trudeau called Lutnick's comments "promising" in remarks to reporters in Canada.

"That aligns with some of the conversations that we have been having with administration officials, but I'm going to wait for an official agreement to talk about Canadian response and look at the details of it," Trudeau said. "But it is a promising sign. But I will highlight that it means that the tariffs remain in place, and therefore our response will remain in place."

Lutnick emphasized that the reprieve would only last until April 2, when he said the administration plans to move ahead with reciprocal tariffs under which the US will impose levies that match those imposed by trading partners.

In the meantime, he said, the current hiatus is about getting fentanyl deaths down, which is the initial justification Trump used for the tariffs on Mexico and Canada and levies on Chinese goods that have now risen to 20%.

"On April 2, we're going to move with the reciprocal tariffs, and hopefully Mexico and Canada will have done a good enough job on fentanyl that this part of the conversation will be off the table, and we'll move just to the reciprocal tariff conversation," Lutnick said. "But if they haven't, this will stay on."

Indeed, Trudeau is expecting the US and Canada to remain in a trade war.

"I can confirm that we will continue to be in a trade war that was launched by the United States for the foreseeable future," he told reporters in Ottawa.