Egyptians are suffering from the highest inflation in a decade, here's what you should know

Egypt's inflation has risen to the highest level in more than a decade and Egyptians are feeling the effects.

Inflation surpassed 30 percent in January. Prices of food, transportation and education are rising and Egyptians are forced to make cuts and changes.

Here's what you should know.

Egypt's pound was formerly pegged to the U.S. dollar. In the beginning of November, the central bank announced it would float the currency. 

The value of the pound was roughly cut in half, sending shockwaves through the Egyptian economy and crippling consumers' spending power.

The country's central bank said the decision came as part of a "home-grown reform program" and that it has the support of the international community. 

"This move will allow market demand and supply dynamics to work effectively," it said, according to Bloomberg.

Due to Egypt's ongoing economic crisis, the government turned to the International Monetary Fund (IMF) seeking a $12 billion loan, which has since been granted.

IMF Managing Director Christine Lagarde told Egyptian officials that they needed to address the country's exchange rate issues and curb energy subsidies before the loan could be made. So, the pound was floated and subsidies were cut.

Before the flotation, prices were already high for average Egyptians, even for the most basic items. In October, due to a dollar shortage in the country, Egyptians were having a hard time even finding sugar to purchase, if they could afford it.

Following the flotation, food and drink prices have increased nearly 40 percent. Some meat prices have even increased as much as 50 percent.

"People are buying half of what they did before, because it's gotten very expensive," an Egyptian butcher told the AP.

"They're buying less than before. Instead of buying five or six items they'll buy two, for example," a grocery clerk said. "No one knows what the prices will be next."

Besides purchasing less food, Egyptians are finding other ways to save. 

More people are using public transport, they are sending their children to cheaper private schools, buying local instead of imported goods and even cutting back on their electricity use, the AP reports. 

But, for a third of Egypt's population, which lives on $1.9 a day or less, there's no room to cut back.

"For people who are more working class or poor, there's less room for belt-tightening at this point since such a large percentage of their salary was already devoted toward purchasing food," Timothy Kaldas, a non-resident fellow with the Tahrir Institute for Middle East policy, said.

Directly following the decision to float the pound, stocks jumped to an eight year peak in Egypt.

The Egyptian Exchange (EGX) 30 index leaped by more than 8 percent, with many stocks rising their 10 percent daily limits, according to The National. With only a 3.6 percent gain, the EGX 100 didn't fair quite as well.

Investors have returned to Egypt, buying bonds, and reserves in foreign currency are rising.

The IMF, the government and other economic experts expect the inflation to ease later this year.