The government of Egypt plans to reduce staple food expenses

The Egyptian government has reached a deal with private manufacturers to lower the price of essential goods as of Saturday and exempt them from customs fees for six months.

The prime minister announced on Monday that the Egyptian government, which is fighting record inflation, has reached an agreement with private manufacturers and merchants to reduce the price of staple commodities by 15% to 25% as of Saturday and free them from customs charges for six months.

Following a meeting with ministers, Mostafa Madbouly listed the foods as fava beans, lentils, dairy goods, cheese, pasta, rice, sugar, poultry, and eggs.

Chain stores had consented to give up revenues on certain goods.

The September headline inflation rate, which will be released on Tuesday, is anticipated to reach a record high in advance of the mid-December presidential election.

Reuters polled analysts, who predicted September inflation would be 37.6%.

The supply minister added that the government will keep an eye on how the price cuts were carried out but did not specify how.

According to the finance and supply ministries, the government would also expedite customs clearances at ports, while banks had committed to assisting food producers in obtaining foreign inputs.

Manufacturers have complained that their capacity to import has been restricted by a scarcity of foreign currency, forcing them to reduce production.

According to Madbouly, private producers had consented to list their prices on their goods and make them widely accessible in retail chains.