Egypt's bread prices have not increased despite a significant rise in flour prices. According to Khaled Fakri, head of the Cairo Chamber of Commerce's bakeries committee, there has been no change in the prices of free-market bread. Fakri stated that any potential price increase would require a ministerial directive. The current directive, issued in March, sets prices for tourist bread: 80 grams for 2 pounds, 60 grams for 1.5 pounds, and 40 grams for 1 pound.
The price of a ton of flour has risen by 4,000 pounds since July 14, with four increases during July totaling 2,250 pounds, and additional increases in August and September. Fakri noted that a meeting was held on the previous Sunday to discuss potential price increases with owners of tourist and foreign bakeries. The meeting came after the latest flour price increase of 250 pounds on the preceding Sunday.
Bakeries are seeking permission to raise prices, and the committee has been tasked with contacting the Ministry of Supply to obtain a new directive reflecting current market conditions. Fakri revealed that the committee has requested a 12.5% increase, equivalent to 25 piasters for an 80-gram loaf currently priced at 2 pounds. This potential increase aims to help bakeries cover rising costs.
Fakri emphasized that bakery owners are currently absorbing the increased costs and are awaiting a decision from the Ministry of Supply regarding potential price adjustments. He assured that any future price increases would be transparent and announced publicly. The Ministry of Supply is the sole authority responsible for determining bread prices.
The current prices of tourist bread remain unchanged, with the 80-gram loaf priced at 2 pounds, the 60-gram loaf at 1.5 pounds, and the 40-gram loaf at 1 pound. Despite rising flour costs, bakery owners are committed to maintaining these prices until a new directive is issued.
Fakri's statements come amid concerns about potential price increases for subsidized bread. The Egyptian government has been implementing measures to support low-income households through various initiatives, including subsidies on essential goods like bread.
The situation highlights the delicate balance between maintaining affordable bread prices for consumers and ensuring the sustainability of the bakery industry in Egypt. As the country navigates economic challenges, stakeholders are closely monitoring the situation to determine the potential impact on bread prices and the broader food market.
Key points
- Egypt's bread prices remain unchanged despite a significant increase in flour prices since July.
- The Cairo Chamber of Commerce's bakeries committee has requested a 12.5% price increase, equivalent to 25 piasters per loaf.
- The Ministry of Supply is the sole authority responsible for determining bread prices in Egypt.
