Egypt has set maximum prices for unsubsidised bread sold in private bakeries, reviving price controls on staple food as the government seeks to limit the impact on consumers of an expected rise in inflation due to the Iran war.
Inflationary pressure is growing after a spike in global oil prices due to the war, which prompted Egypt to raise fuel prices, and analysts say the pressure will ripple through transport and production costs across the economy.
Egypt relies heavily on bread as a dietary staple, making price changes politically sensitive in the country of about 120 million people.
In a ministerial directive issued yesterday, supply minister Sherif Farouk capped the price of unsubsidised loaves sold outside the state bread programme at 2 Egyptian pounds ($0.04) for an 80-gram loaf.
The same ceiling was set for a 50-gram fino bread roll commonly used for sandwiches.
Smaller loaves were assigned lower maximum prices, with a 60-gram loaf capped at 1.5 pounds and a 40-gram loaf at 1 pound, the ministry said in a statement.
The measure aims to regulate markets and ensure citizens can obtain bread “at fair and appropriate prices,” the ministry said, adding that authorities will monitor bakeries and penalise violations.
Egypt is typically the world’s largest wheat importer, relying on foreign supplies for more than 50pc of its consumption, to meet demand from both the private market and a subsidised bread programme that serves about 69 million people.
Similar measures have been temporary in the past, most recently in 2024 and 2022.
But industry representatives questioned whether the government could effectively control prices in the unsubsidised market.
“There is no way the government can control the price of unsubsidised bread,” a grain industry source said.
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