Economic experts warn that, unless the Government intervenes to buoy up the weak purchasing power of the Egyptian pound in the domestic market, tragic social unrest could erupt.
The warning comes in response to the feeble cries from millions of Egyptian families, suffering from the uncontrollable price hikes.
The families' frustration has increased, now that the price of a kilo of tomatoes has doubled this month from LE5 to LE10, virtually overnight.
This healthy vegetable was, until very recently, always considered to be a cheap and indispensable ingredient in the meals of middle-class and poor Egyptians.
Many other commodities which used to be inexpensive, such as aubergines, lentils and various sorts of beans, have also shot up outrageously in price.
The dilemma of Egyptian families was debated in a recent, hours-long Cabinet meeting in response to firm instructions from President Hosni Mubarak.
But the meeting did not come up with anything positive, as Minister of Trade and Industry Rashid Mohamed Rashid ruled out suggestions that the Government should ignore the rules of the free market and fix the prices of basic commodities.
In a statement widely described as intimidating, the Cabinet hinted that the tomato prices would be restrained “not before November this year”.
Around 40 per cent of Egypt’s 80 million population live below the poverty line, according to the World Bank.
Disgruntled citizens have urged the Government to find a way out by proposing a new bill, which could help stabilise the prices in the free market.
Tareq Abu Samra, a lawyer, protests that the free market policy has been cynically exploited, giving prices free rein in the market.
“Every country, even an advanced one like the US, has a price control authority, whose task it is to restrain outrageous bids by traders and merchants to make enormous profits at the expense of the consumer,” he stresses.
Meanwhile, a financial adviser insists that the ordeal of the Egyptian family has come as a result of the “unjust distribution of wealth”.
Hussein Fawzi also blames the problem on the allegedly large-scale scams in society.
“The poor are becoming poorer in Egypt and the rich richer,” the adviser says, adding that ordinary people would breathe a sigh of relief if their salaries were increased.
He stresses that wage rises should outpace price rises.
