Egypt to Raise Subsidized Bread Prices to 20 Piastres Amid Financial Crisis, Says Prime Minister

May 29, 2024, 12:33 PM

Egypt is facing a financial crisis due to various internal and external factors. To address this, the government is implementing reforms supported by the International Monetary Fund (IMF), which recently disbursed $820 million to Egypt. As part of these reforms, the government has decided to raise the price of subsidized bread from 5 piastres to 20 piastres starting in June. This is the first price increase in decades and aims to reflect the true cost of bread production, which is around 125 piastres. Prime Minister Mostafa Madbouly stated that while the government remains committed to the subsidies program, it is looking to rationalize it and is considering a shift to a cash subsidies system, which he described as a 'more sustainable' solution.