CAIRO: The increase of inflation rate the Egyptian market witnessed in May could increase with certain goods including wheat and diesel oil, especially in Ramadan month, according to Egyptian economists. The holy month of Ramadan is when the Muslims fast during daylight. Prices of tomatoes, gas tubes, cigarettes, and gold went up by 120 percent, 72 percent, 60 percent, 34.39 percent respectively. This increase indicates inflation is growing. The Egyptian Agency for public Mobilization and Statistics issued a report on Wednesday saying the inflation rate increased since May. "There are three commodities increasing in price over the next few days, including wheat, diesel and engineering spare parts," said Egyptian Director of the Center for Economic Studies, Salah Goda. He added there should be a wheat stock for at least two months since imported wheat takes 25 days to be stored. The merchants are following up on international prices that coincide with the increase of transportation prices. This rise could cause an increase of price of food goods during the next two months, Goda continued. He expected inflation would increase from 12.4 percent in May to 14 percent until the Fitr Feast, a celebration to the end of the month of Ramadan. Diesel oil is the second important commodity and heading to increase since Egypt depends on it, even if it is a big stock. Goda sees Egypt should export gas and imported crocin. Egyptian economics professor at Cairo University, Rashad Abdo, expects the next period will witness an increase in price of meat, which would increase in price percentage due to the increase of international prices. He added Egyptian Prime Minister Essam Sharaf and the Minister of Social Solidarity Goda Abdel-Khalek should put a plan to face this crisis. Meanwhile, the board director of Osol Company for stock brokerage, Ehab Said, noted the increase of prices will negatively affect the foods and drinks shares in the stock market.
