Egypt Sets Fixed Price on Unsubsidized Bread Over War in Ukraine

Egypt’s prime minister set a fixed price for commercially sold bread on Monday, in reaction to the rise in the price of wheat due to Russia’s war on Ukraine. The availability of less expensive wheat has been cut off due to the closing of the Black Sea. Prime Minister Moustafa Madbouly set the price for unsubsidized bread at 11.50 Egyptian pounds, or $0.66, per kg. The price of the unsubsidized bread had risen by as much as 25% at some bakeries, Reuters reported.

The fixed price will remain in place for three months, with fines for such violations rising to up to 5 million Egyptian pounds.

Egypt has been the world’s largest wheat importer, with Russia and Ukraine accounting for some 80% of sector imports last year, according to Reuters.

Meanwhile, the Egyptian pound depreciated by almost 14% on Monday.