CAIRO Dec 14 Edita Food Industries,
one of Egypt's largest snack food producers, said on Wednesday
it was raising prices by between 20 and 50 percent amid higher
input costs due to the drop in the value of the Egyptian pound
Inflation surged to an eight-year high of 19.4 percent in
November, propelled by a steep depreciation in the country's
currency, which has roughly halved in value since the central
bank floated the exchange rate on November 3.
The pound was being sold at about 18.8 per dollar at
banks on Wednesday compared with 8.8 before the float.
Edita, which has the local franchise for brands including
Twinkies, HoHos and Tiger Trail, told Reuters last month that it
planned to raise prices but did not specify by how much.
The decision points to challenges faced by firms around the
country grappling with higher import costs and surging
The company briefly had its sugar supplies seized by
government inspectors in October amid a nationwide shortage that
has roughly doubled the cost.
Edita said the price increases were based on the price and
availability of foreign currency at banks as well as the
company's expectation that inflation will remain high.
Many importers have struggled to obtain foreign currency
from banks amid an ongoing shortage that has sapped the
country's ability to purchase from abroad, with buyers of
essential goods like wheat and medicine given priority.
"We believe a higher-inflation environment facilitates the
pass-on of price increases in the long term as consumers are
primed to expect price increases across all sectors," a company
(Reporting by Eric Knecht; Editing by Greg Mahlich)