Egypt reveals plan to stabilize basic goods prices amid regional tensions

The initiative aims to expand outlets and permanent markets nationwide to stabilize commodity prices, reduce the cost of living for citizens, and regulate supply chains, in line with President Abdel-Fattah El-Sisi's directives.

The main factors affecting commodity stocks and prices are transportation and shipping costs, as well as the role of intermediaries, according to Deputy Prime Minister for Economic Affairs Hussein Issa.

This comes amid renewed tensions in the Middle East in recent days over the closure of the Strait of Hormuz and Houthi attacks near the Red Sea, most recently on Monday. Egypt has faced temporary capital flow pressures and disruptions to international supply chains since the start of the conflict, prompting the government to accelerate efforts to strengthen its export and transit trade systems.

The Egyptian pound's recent decline beyond EGP 50 against the US dollar has renewed concerns over inflationary pressures on consumer prices. The impact on food prices is expected to be gradual, but import-dependent sectors and products are likely to be affected first.

The extent of any price increases will depend on how long the dollar remains elevated and on inventory levels held by manufacturers and traders.

Egypt's annual urban headline inflation slowed to 12.2 percent in June from 13 percent in May, while monthly headline inflation eased by 0.9 percent despite increases in the prices of some goods and services.

Furthermore, the programme's implementation plan is currently being drafted, with a comprehensive 12-month outline expected within days.

The plan will include mechanisms to reduce commodity prices, alongside a national map of permanent markets and outlets to establish at least one in every governorate.

Proposed mechanisms include forming a Supreme Committee to oversee the programme's implementation, as well as unifying and managing the network of mobile outlets as a tool for rapid market intervention.

These outlets, which can be established within 30 to 45 days, will belong to the ministries of Supply and Internal Trade and Agriculture and Land Reclamation, the Future of Egypt Authority (FOE) for Sustainable Development, and the National Service Projects Organization (NSPO), operating under a unified system.

This will help manage the supply and distribution chain by linking production, storage, transportation, markets, and outlets while reducing the number of intermediaries and improving supply efficiency and the availability of essential goods.

The FOE and the ministries of Supply and Internal Trade and Agriculture and Land Reclamation have finalized the formation of a joint national company to serve as the programme's executive arm, as well as for the Carry On initiative, which will establish the outlets, support the programme, and unify the branding of state-run consumer and supply complexes.

Carry On is part of broader efforts to improve domestic trade and expand access to subsidized and affordable food, particularly during high-consumption seasons such as Ramadan.