Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 09CAIRO2007, INFLATION COMING DOWN, BUT PERSISTENT HIGH FOOD

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09CAIRO2007.
Reference ID Created Released Classification Origin
09CAIRO2007 2009-10-21 14:44 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Cairo
VZCZCXYZ0000
PP RUEHWEB

DE RUEHEG #2007/01 2941444
ZNR UUUUU ZZH
P 211444Z OCT 09
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC PRIORITY 3956
INFO RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
UNCLAS CAIRO 002007 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EG PGOV
SUBJECT: INFLATION COMING DOWN, BUT PERSISTENT HIGH FOOD 
PRICES SLOWING THE FALL 
 
REF: CAIRO 001927 
 
1. (U) Key Points: 
 
-- Overall inflation has been falling for most of the year 
and hit a 20-month low of 9% in August; however, food price 
inflation has been very strong all through 2009. 
 
-- The supply chain for food is full of inefficiencies which 
exacerbate high food price problems.  The Government of Egypt 
(GOE) is trying to address some of them by improving 
infrastructure. 
 
-- The Central Bank of Egypt (CBE) seems unconcerned by 
inflation and is focused on spurring economic growth.  The 
CBE has cut interest rates six times so far this year. 
 
-------------------------- 
Food Prices High This Year 
-------------------------- 
 
2. (SBU) Inflation in Egypt has been coming down from its 
peak in summer 2008, but it has fallen at a slower pace than 
economists expected.  The rate reached a 20-month low of 9% 
year-on-year (y-o-y) in August, down from its peak of over 
20% last summer, but then increased to 10.8% in September. 
Food prices were up 17.4% y-o-y in September.  Food price 
inflation has been very strong all through 2009, driven 
mainly by fruit and vegetable prices according to Simon 
Kitchen, Vice President of EFG-Hermes, a regional leading 
investment bank.  In addition, rising global sugar prices 
drove up domestic sugar prices in September, and demand 
during Ramadan drove up food prices over the past few months. 
 Food prices have a strong effect on the overall price index 
because food accounts for about 44% of Egypt's consumer price 
index. 
 
-------------------- 
The "Ramadan Effect" 
-------------------- 
 
3. (SBU) Increased demand pushes up food prices before and 
during Ramadan, which ran from the end of August to the end 
of September, since household spending on food increases 
significantly due to higher overall consumption despite daily 
fasting.  In addition, some wholesalers and retailers take 
advantage of the increased consumption and consumer 
expectations of higher prices by hoarding goods and raising 
prices, according to Amgad Hegazy, an economist at the 
Ministry of Finance.  In September, food prices increased 55% 
on an annualized basis after jumping 64% on an annualized 
basis in August and 44% in July. 
 
4. (SBU) Egypt's economic slowdown does not appear to have 
impacted demand during Ramadan.  Press reports and anecdotal 
evidence from lower, middle, and upper income markets suggest 
that demand for Ramadan related goods remained high and 
similar to last year.  Hotel managers also reported that 
demand for venues for Iftar, the nightly breaking of the fast 
celebration, was the same as last year. 
 
--------------------------------- 
Problems in the Food Supply Chain 
--------------------------------- 
 
5. (SBU) Last year,s global decline in food commodity prices 
did not fully transfer to Egyptian domestic prices.  Food 
prices are sticky downwards, according to Reham El Desoki, 
economist at Beltone Research, who attributes this to a lack 
of market information that allows sellers to markup their 
prices without consumers realizing it.  Hanaa Kheir-El-Din, 
executive director of the Egyptian Center for Economic 
Studies also attributed it to monopolistic practices 
throughout the supply chain, especially distribution. 
 
--------------------------------- 
GOE Tools to Bring Down Inflation 
--------------------------------- 
 
6. (U) The Central Bank of Egypt has not increased interest 
rates to reduce inflation because it assessed that the high 
inflation is coming from high volatility in food prices and, 
in its opinion, does not represent underlying inflationary 
pressures.  The Central Bank is primarily focused on 
encouraging economic growth and has cut interest rates six 
times this year. 
 
7. (U) Minister of Trade and Industry Rachid M. Rachid laid 
out a plan at the end of last month (reftel) to invest in 
domestic infrastructure to significantly improve the domestic 
supply chain and the movement of products to improve consumer 
 
access to those products which should bring down prices over 
the long-term. 
 
------- 
Comment 
------- 
 
8. (SBU) High and rising food prices are hard on the average 
Egyptian, and especially hard on the poor who spend a 
disproportionate amount of their income on food.  Egyptians 
have also noticed, and complain that when international food 
prices rise, domestic ones do too, but when international 
prices fall, that decrease in price is not passed on to them. 
 Egyptians are looking to the GOE to bring down food prices, 
but the GOE has limited straight-forward tools to do so. 
Successful Ministry of Trade and Industry efforts to improve 
the supply chain and movement of goods could help bring down 
costs in the long run, but the GOE's track record in this 
area gives some reason for skepticism.  Further, there have 
been no specific discussions about tackling monopolistic 
practices in the supply chain which could undermine gains 
made in other areas.  High and rising food prices will also 
make it difficult for the GOE to reduce its spending on food 
subsidies, one of the major drains on the budget. 
Scobey