Saturday 11/October/2025 – 11:32 PM
Journalist Amr Adib, during an interview with economic expert Dr. Mohamed Fouad, asked about the reasons for the continued rise in prices in Egyptian markets, despite the decline in the price of the dollar to about 47.5 pounds, indicating that citizens do not feel the impact of this decline on the prices of goods and services.
Reasons for the continued rise in prices in the markets
Dr. Mohamed Fouad explained on the Al-Hekaya program that what is happening is related to a phenomenon known as the stagnation of prices towards decline, explaining that markets respond quickly to rising costs but do not reduce prices as quickly when they decline, due to several factors, most notably the desire of traders to maintain profit margins, weak confidence in the stability of the exchange rate, and the average cost of inventory that is priced at higher prices in previous periods.
He added that the inventory cycle takes from 3 to 8 months in some sectors, which delays the impact of the dollar’s decline on prices, noting that the slight decline in the prices of some commodities such as poultry, eggs, and cars began to appear recently as a result of supply and demand pressures.
Fouad stressed that the continued rise in energy and fuel prices represents an additional challenge, given that Egypt has become more exposed to international prices due to the decline in its domestic production of crude oil, which makes the cost of energy in dollars high despite the decline in the local exchange rate.
In a related context, the economic expert pointed out that foreign exchange reserves reached a record level of $49.5 billion, the highest number in Egypt’s history, driven by an increase in remittances from Egyptians abroad, an increase in tourism numbers to about 17 million tourists annually, and an increase in foreign investments in debt instruments.
He concluded his speech by emphasizing that the impact of economic reforms on local prices requires time for the market to gain confidence in the stability of monetary conditions, stressing the importance of continuing oversight and activating competition to ensure that the decline is quickly passed on to the consumer.
