Egyptian non-oil private sector declines to 2-year low

The devaluation of the Egyptian pound was cited as the main factor in the rise of price pressures. Purchase cost inflation hit its highest level in four and a half years, leading to a sharp increase in selling charges since February 2017. The US dollar has risen over 100 percent against the pound since March, just after the war in Ukraine started.

Continuous inflationary pressures caused a significant and faster decline in new business inflows, leading companies to make further cuts in activity, purchasing and employment. Egypt's headline annual inflation accelerated to over 21 percent in December, the highest in almost five years, with January readings expected to be released this week.

"The latest PMI survey data showed purchasing costs increasing at the sharpest rate in four-and-a-half years, as the pound's depreciation drove a further rise in import fees," said David Owen, senior economist at S&P Global Market Intelligence.