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Tunisia: inflation surges to highest level in 3 decades

July 6, 2022 at 2:35 pm

Tunisian bank note on March 27, 2020 [FETHI BELAID/AFP via Getty Images]

Tunisia’s annual inflation rate rose to 8.1 per cent in June, up from 7.8 per cent in May, the state-run National Institute of Statistics announced yesterday. This is the “highest in three decades,” it said, noting that the increase was attributed to the “consequences of the Russian-Ukrainian war.”

The institute pointed out that inflation had led to a rise in food and beverage prices by 9.5 per cent and that the cost of furniture, household goods and routine household maintenance had risen by 9.7 per cent.

The North African country has been witnessing a severe economic crisis. This has been exacerbated by the coronavirus pandemic, as well as the high cost of importing energy and basic materials as a result of the Russian invasion and war in Ukraine.

The Tunisian Central Bank raised its key interest rate by 75 basis points to 7 per cent in May from 6.25 per cent to combat rising inflation. Moreover, in March, Fitch Ratings downgraded the country’s sovereign rating from “B-” to “CCC”.

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