Prasad: We Expect Inflation Numbers to Rise

The video discusses the economic challenges faced by Egypt and Turkey. Egypt is dealing with rising inflation due to food and fuel costs, and there is speculation about potential rate hikes by the new Bank of Egypt Governor. Discussions with the IMF suggest a move towards a flexible exchange rate. Meanwhile, Turkey is experiencing an inflation rate of 80%, with the lira being one of the worst-performing currencies. The producer price index is alarmingly high, and there is skepticism about the official inflation data. Both countries face significant economic pressures with no immediate policy changes expected.

Discuss the potential impact of a flexible exchange rate regime in Egypt.

What challenges does Turkey face regarding its economic policy and inflation?