Egyptian Prime Minister Mostafa Madbouli announced increase in the price of subsidized bread for the first time in three decades, reported in “Daily News Egypt”. From the beginning of June, the price of a loaf of bread will increase from 5 piastres ($0.001) to 20 piastres ($0.004), BTA reports.
“The price of a loaf of bread for the government is 125 piastres,” Madbuli said at a press conference, highlighting the subsidy program's burden on the state treasury.
The decision to increase the price of subsidized bread is a sensitive issue in Egypt, where bread is a staple food and a symbol of social stability. The attempt to reduce bread subsidies in 1977 led to the so-called “bread riots”. About 70 million people out of the country's 106 million people are part of the subsidized basic food program, which includes rice, pasta, oil and bread.
In the last two years, Egypt has faced an economic crisis. The local currency lost two-thirds of its value and inflation reached a record 40 percent.
Earlier this year, Cairo received a bailout of more than $50 billion in loans and investment deals from the International Monetary Fund (IMF), the World Bank, the United Arab Emirates (UAE), the European Union (EU). Agreements to receive the funds include carrying out reforms, including limiting the role of the state in the economy and implementing policies to control inflation.
The authorities recently cut fuel subsidies and increased the price of public transport, saying they are implementing a plan to completely eliminate fuel subsidies by the end of 2025.