00:06A bakery in Cairo is operating like any normal day.
00:10Despite the recent price hikes in the market, a government-enforced price cap on unsubsidized
00:16bread is in place at a range that reaches 4 cents for the heaviest loaf of 80 grams.
00:26The prices haven't changed before or after the war.
00:29It's a very good idea and will not put any additional load on our expenses as families.
00:37The price of bread is a sin.
00:39I appreciate efforts by the government, but they have to ensure bakeries are applying the
00:42price cap.
00:43We need strict monitoring of bakeries to make sure bakeries adopt it.
00:46Bread is a major food staple for Egyptians, available in nearly every meal.
00:53That's why, since the Iran war broke out, the government has quickly moved to prevent any
00:59price increase that could lead to a public backlash.
01:05There was an increase in prices of wheat and flour globally due to the hike in freight and
01:10shipping costs.
01:10commodity suppliers raised prices of wheat and flour by thousands of Egyptian pounds,
01:16and that forced bakeries to increase bread prices.
01:19Therefore, the government intervened.
01:21Officials say they're making it up for bakeries, worried of mounting losses due to the price
01:27limits.
01:29There are no problems facing bakeries, because the government is paying the difference in cost
01:34to bakeries so they can maintain their capital incurring any losses.
01:40Egypt has a six-month stock of strategic commodities like wheat, rice and flour, which would buy some
01:46time for the North African country.
01:48Meanwhile, the war has so far had a limited impact on hard currency-yielding sectors like
01:54tourism and foreign direct investments, though remittances from Egyptians living in the Gulf
01:58region is set to significantly drop if the war persists.
02:03There is also growing pressure on Egyptians, as a hike in international oil prices forced
02:09the government to raise fuel prices by 18 percent last week.
02:14The new fuel prices in Egypt have increased prices of most goods and services in the market.
02:23This expects to push inflation above 16 percent and lead to a slowdown or a recession in the
02:29economy.
02:30In response, the government has rolled out a multi-billion dollar social welfare program
02:36that includes raising minimum wage, salaries and pensions to protect the low-income earners
02:43units from the impact of a prolonged war.
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