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Egypt's Annual Inflation Rate Drops to 29.8% in January

Capital Economics research institution said that inflation in January was lower than its expectations of 34% (Reuters)
Capital Economics research institution said that inflation in January was lower than its expectations of 34% (Reuters)
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Egypt's Annual Inflation Rate Drops to 29.8% in January

Capital Economics research institution said that inflation in January was lower than its expectations of 34% (Reuters)
Capital Economics research institution said that inflation in January was lower than its expectations of 34% (Reuters)

Egypt's annual urban consumer price inflation dropped to 29.8% in January from 33.7% in December, the state statistics agency said on Thursday.
According to data published by the Egyptian Central Agency for Public Mobilization and Statistics on its website, prices rose by 1.6% in January month-on-month, up from 1.4% in December.
Food prices climbed by 1.4%, down from 2.1% in December. In the year to January, food prices rose by 47.5%, down from 60.5% in the year to December.
Capital Economics said that inflation in January was below its expectations of 34% and the average market expectation of 32.9%.
The research firm indicated that inflation is expected to continue to slow this year but added that the significant, looming devaluation of the currency means that inflation will remain at a high level for a more extended period.
It also referred to the delay in import movement, likely to be exacerbated by the unrest in the Red Sea.
The inflation rate is projected to remain higher than the range the Central Bank targets until mid-2025.
The Central Bank is expected to raise interest rates again to rebuild its ability to combat inflation.
The London-based institution indicated that price pressures will remain relatively strong despite the slowdown in inflation for the fourth month in a row.
- Devaluation of the Egyptian pound
According to Capital Economics, the upcoming agreement between Egypt and the International Monetary Fund (IMF) will undoubtedly be accompanied by a significant devaluation of the currency, expecting a reduction in the exchange rate to 65 pounds to the dollar.
The institution expected further tightening of monetary policy and that the Central Bank would raise the interest rate by no less than 300 basis points, bringing the interest rate on overnight deposits to 24.25%.

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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."