“Algerian Inflation Crisis: Understanding the Soaring Prices of Goods and Services in 2023”

2023-04-29 22:00:00

Algeria started the year 2023 with a bang with a first quarter where inflation experienced a general explosion compared to that of the previous financial year. Inflation, whether in Algeria or elsewhere, is normally characterized by a persistent increase in the average price of goods and services.

But in Algeria, as humorist and actor Mohand Fellag would say, “as soon as we hit the bottom instead of bouncing we rather try to dig “. And this is the case of the Algerian authorities who, regardless of sectoral variations, across the entire economic spectrum have ensured that this translates into a reduction in purchasing power for the Algerian, however lambda he may be and at the misfortune of the housewife’s basket.

East of Eden, the historic rise in the prices of consumer products might not be more evident. And it is not tomorrow the day before that this is likely to improve despite the petrodollars flowing freely. To the misfortune of the Algerian citizen, they will swell the pockets of the many generals in the ANP. A safe bet that the rise will continue even further over the next few months, despite the favorable economic situation experienced by Algeria thanks to hydrocarbons.

Rising food prices are putting many Algerian households on the brink, as basic commodities have become excessively expensive thus turning into luxuries accessible only to the more affluent follow the gaze. The latest consumer price index (CPI) from the Office National des Statistiques (ONS) for the month of April, a government body responsible for collecting socio-economic and demographic data, is very eloquent on this subject.

He indicates that inflation continues to grow strongly in Algeria to approach the 10% mark. Referring as usual to Algiers where the CPI follows the same trend as the general national trend, the document indicates the annual “rhythm” of inflation during the period from April 2022 to March 2023 and from April 2021 to March 2022 is +9.4% . In March 2023, the change in consumer prices was +10.1%, compared to the same month of 2022”.

According to the ONS document, “Between March 2022 and March 2023, the price index increased by +10.08% in Algiers. At the national level, this index jumped by +10.16%. By way of comparison, in March 2022, the change in consumer prices was +9.3% compared to the same month of 2021. The annual inflation rate between April 2021 to March 2022 and between April 2020 to March 2021 was +8.2%. As we can see, Algeria is one of the most assiduous in terms of inflation.

Still according to the same bulletin, many categories of consumer products have suffered a price increase in Algeria “At the national level, in March 2023 and compared to the same month of the year 2022, the evolution of food prices is +14.3%.And the trend might not be more exponential, the ONS will say. “in March 2023 and compared to the same month of 2022, the evolution of consumer prices is +15.53% for education, culture and leisure” the institution will specify that the prices have “increased by +14.36% for food and non-alcoholic beverages”.

However, the increases spared a few sectors, such as transport and communications. “The lowest rate is recorded for the group of transport and communication which has only evolved by +1%, clothing and footwear is +6.74%, housing and charges by +2.79% while health and personal hygiene jumped (+8.24%)”is it still detailed.

The prices of fresh agricultural products are marked by a significant increase in Algeria. The price of onions broke a record with an increase of +166% between March 2022 and the same month of 2023. The price increase is estimated at an average of 6.1%.“More or less significant variations characterize the products in this category, which recorded an increase of 31.2% for vegetables and +3.1% for potatoes”, which according to the ONS is counted separately as if the potato were not a vegetable. Maybe because she’s too hot. You never know times with these corporals!

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