Official figures released on Monday revealed that annual inflation in Egypt reached a record high of 36.8 percent in June. This marks a significant milestone for the country as it grapples with a severe economic crisis.

The previous record of 34.2 percent, set in July 2017, was also linked to a sharp currency devaluation associated with a bailout loan from the International Monetary Fund.

The Egyptian pound has depreciated by half against the US dollar since early last year, leading to a surge in prices and further burdening families struggling to meet their needs in this import-dependent nation.

The latest figures indicate an almost 37 percent increase compared to June of the previous year. Additionally, there was a two percent month-on-month rise from May of this year.

While official data had previously shown some signs of easing inflation in recent months, the new figures highlight a staggering 64.9 percent increase in food and drink prices alone compared to June 2022, as announced by the state statistics agency CAPMAS.

The economic crisis has been exacerbated by Russia's invasion of Ukraine last year, which disrupted crucial food imports. Even before this, the World Bank reported that 30 percent of Egyptians were living below the poverty line.

The invasion's impact on global markets prompted investors to withdraw billions of dollars from Cairo's foreign reserves. While reserves have shown a slight increase this year, reaching $34.8 billion in March (up $500 million since February), they are still $7 billion lower than pre-war levels.

Of the total reserves, approximately $28 billion consists of deposits from wealthy Gulf allies, whose plans to purchase Egyptian state assets have experienced delays in recent months.

Egypt, the most populous country in the Arab world, has relied on bailouts from both Gulf allies and the IMF in recent years to address its economic challenges.