Egypt develops cutting-edge AI solution to predict commodity price fluctuations

In a groundbreaking move to bolster market stability, the Egyptian government is embarking on the development of an innovative AI-based system designed to forecast potential crises in the local marketplace. Spearheaded by Osama El-Gohary, Assistant Prime Minister and head of the Cabinet’s Information and Decision Support Centre (IDSC), this initiative aims to proactively address price hikes in essential commodities and staples, ensuring greater economic resilience and consumer protection.

During a recent meeting with Prime Minister Mostafa Madbouly, El-Gohary unveiled the comprehensive approach being taken by the committee tasked with market control and price regulation. The process begins with meticulous data collection, involving the registration of companies and the aggregation of information on production, consumption, inventory levels, exports, and imports. This wealth of data serves as the foundation for determining fair pricing structures, evaluating profits, and establishing transparent distribution mechanisms.

Notably, the initiative will include the creation of an early warning system, functioning in two stages. The initial stage will provide composite indicators for market monitoring, while the subsequent phase will leverage cutting-edge predictive AI techniques. This forward-looking approach seeks to identify potential price fluctuations before they escalate, empowering authorities to take proactive measures and avert crises.

This initiative builds on Egypt's ongoing efforts to address soaring inflation and price volatility that plagued the country in 2023. Strategic measures, including the classification of essential food items as strategic commodities and the introduction of price printing on factory-produced goods, have already contributed to a decline in inflation rates. The government remains committed to further reducing inflation, targeting levels below 10 percent by 2025.

As Egypt pioneers this AI-driven approach to predict and mitigate commodity price crises, it underscores the nation's dedication to ensuring economic stability and safeguarding the well-being of its citizens in an ever-changing global market.