Document Type : Original Article


Agric. Economics Dept., Fac. of Agric., Ain Shams Univ., P.O. Box 68 Hadayk Shoubra, 11241, Cairo, Egypt


With the full recognition that the problem of inflation in Egypt is due mainly to factors related to the recent economic policy, while others are related to structural reasons, that ignited the flames of inflation led by monopolies prevailing in the commodity market. The problem is the rise in food and drink prices (FCPI) in particular. The problem is further compounded by the increase in poverty in Egypt, which rose to 31.8% in October 2017. The most serious is the increase of extreme poverty rate of 5.8% of the population is mainly due to rising food prices.  The research is concerned with the analysis of general price index and the food price index in four regions, namely, rural upper Egypt, urban upper Egypt, rural lower Egypt, and urban lower Egypt.  The research compare between the evolution of consumer price indices in two period, the first period cover, 22 months before the adoption of the 
floating exchange rate policy and second period cover 15 months after the adoption from November 2016 of the new policy and it.  The main of the research are summarized in the following points:   1- Increase the general index of prices and number.                       2- A marked increase in the indices in the geographical areas in the countryside from the urban during two periods.                             3- There is a significant effect of the time component on the increase in the price index during two periods of study, which was more evident in the float period.                            4- The food price index had a clear effect on the increase in the general price index in the regions.  5- The conditions of the increase in the monthly inflation rates in the pre-flotation period in the Egyptian geographical regions, although there was a decrease in the floating period over time, in the floating period.              6- High urban inflation rates for rural areas, despite their rise.