Cairo- Mubasher: The rise of inflation in Egypt will swallow the salary increase of public servants in 2018, Korn Ferry said in a report.
The report expected salaries of civil servants to raise 15% in 2018 and inflation to grow 18.8%, that in return drives salaries to drop 3.8%.
Egypt's annual urban consumer price inflation recorded 26.7% year-on-year in November 2017, from 31.8% the previous month, the Central Agency for Public Mobilization and Statistics (CAPMAS) data showed.
Egypt has implemented an economic reform programme backed by the International Monetary Fund (IMF) which includes tax system restructure, lifting fuel and staple good subsidies, as well as turning to cash subsidy.
On 3 November 2016, the Central Bank of Egypt (CBE) floated the pound in a move to rebalance foreign-currency market and boost the economy. Since then, the key interest rates have been increased by 300 basis points.
