Tunisia: Central Bank warns of Ukraine impact on inflation 

The Central Bank of Tunisia warned on Tuesday of the possible impact of the Ukrainian war on inflation levels in the North African country.

“The bank is monitoring the repercussions of the Russian-Ukrainian war on international economic activity, supply chains and world prices of basic foodstuffs, which may affect the inflation level significantly,” it was explained in a press release. When other factors are taken into account, said the bank, inflation is likely to get worse in the immediate future.

This, it pointed out, will have an impact on Tunisia’s state budget. Bank officials called for a watchful, proactive approach to mitigate the impact of the war in Ukraine. More than half of Tunisia’s grain imports come from Russia and Ukraine.

Last week, President Kais Saied announced that he would confront those who have a monopoly of basic foodstuffs. However, his warnings to traders about the dangers of speculation and possible prosecution have not produced the desired effects.

Since the end of last year, there has been a shortage of many items in Tunisia, including vegetable oil, semolina, sugar and rice. When they are available, people are limited in how much they can buy.

READ: Ukraine crisis jeopardises Middle East’s Black Sea wheat supply

Russia’s invasion of Ukraine could lead to bread shortages across parts of the Arab world – Cartoon [Sabaaneh/Middle East Monitor]