Traders: Low purchasing power and price variability dominate spice markets in Egypt

Geopolitical tensions in the Middle East, including the ongoing conflict in Syria and Iran's attacks on Israel, have led to a decrease in new spice and perfume shipments, causing a shortage in these products and resulting in price increases. Wholesalers have postponed making new deals, leading to expected price hikes for consumers, with some products seeing up to a 150% increase by the end of 2024. The decline in consumer purchasing power, exacerbated by rising living costs and education expenses, has further impacted the market. While some prices have remained stable, others like black pepper and lentils have slightly increased due to limited stock.

During an inspection tour last week of spice shops in the Attaba and Al-Azhar areas, Al-Mal observed a noticeable difference in prices compared to their recent counterparts, as a result of most retailers not obtaining new goods from wholesalers, due to the decline in purchasing power of consumers during the past and current period. Wholesalers in spice shops confirmed to Al-Mal that the current geopolitical tensions in the Middle East, especially Syria, in addition to the Iranian attacks on Israel and the expectation of expanding the circle of war between them, led to many wholesalers postponing new deals for the most prominent spice types offered in the local market. Expected increases before the end of 2024 due to geopolitical tensions in Syria and Iran Ahmed Sharif, a wholesale perfume merchant, said that there are expected increases in perfume prices in wholesale stores before the end of this year due to geopolitical tensions in Iran and Syria, as new quantities are contracted ...