The country (Egypt) is situated in Northern Africa, bordering the Mediterranean Sea, between Libya and the Gaza Strip, and the Red Sea north of Sudan, and includes the Asian Sinai Peninsula. Israel for 266km, Libya for 1115km and Sudan for 1273km.
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Average annual inflation was over 7% in 2000-08 and remained elevated through to the time of the political transition, ending 2011 at 9.5%. The social impact of high prices will remain a key concern of the government as it attempts to limit further protests. A policy of subsidy reduction is difficult to implement against such a background.