Every person in Egypt can tell that prices have been in rapid increase for years now in Egypt. We still look at things in retrospect and wonder if we could have made better choices considering the ever-growing inflation rates. A report by the CAPMAS points out the rates of price inflation and the goods and services with the highest inflation rates.
December inflation rates were mostly lower than the yearly average because it was when the economy started stabilizing after the intense increase in inflation due to the pandemic earlier in 2020. The report indicates that the rate of inflation for December dropped by 0.5% compared to November which is a significant drop for one month.
The report elaborates that the highest drops were in the sectors of goods and services, food industries, alcohol and cigarettes, and agriculture. Inflation in some sectors kept increasing, however. These sectors are, not surprisingly, healthcare, transport, telecommunications, and furniture. Also, water and electricity prices had witnessed an increase in their inflation rates due to the newly imposed increases in their taxation by the government in the year’s last trimester.
Another massive increase in inflation rates was in the education sector because of the continuous pressure of integrating new measures to keep schooling going during the current breakout. The report’s findings make one realize one thing and that is the world has been heading in one direction with no signs of a way out.
Our best option in controlling the increases in important sectors like education and healthcare is for the government to offer more adaptive and flexible policies and to cap taxation rates at a maximum rate. The report also offers us a more positive outlook; with the rates in the fields of food industries and services decreasing, we understand that the population has been increasingly adapting to the “new normal” imposed by COVID-19. As the majority of sectors have witnessed a drop in inflation rates in December of 2020, we certainly hope that the year 2021 offers us more of that economic and social stability.