Al-Ahram Weekly Online   30 December 2004 - 5 January 2005
Issue No. 723
Economy
 
Published in Cairo by AL-AHRAM established in 1875

Soaring prices


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Inflation returned as a major concern in 2004 following the flotation of the pound and in an attempt to head off criticism the government expanded its subsidy programme to include nine basic food commodities -- beans, rice, oil, tea, sugar and macaroni among them.

Yet complaints were voiced that this was too little, leaving those on low incomes still struggling to pay their bills. Consumers have responded in the only way they can. They buy less. Experts have warned that inflation may leave 23 per cent of the Egyptian population trapped in the poverty net.

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