Tunisia – Tunisia’s annual consumer price inflation rate continued to decline for the second month in a row, reaching 6.7 percent year-on-year in August.
Last July, inflation recorded a decline from the previous month, as it fell to 7% on an annual basis after it was 7.3% (on an annual basis) in June.
This came according to figures published by the National Institute of Statistics (governmental) on Thursday evening, in a statement, and monitored by the Anadolu Agency correspondent.
The Statistical Institute attributed the decline in the annual inflation rate, despite the monthly increase in prices, mainly to the slowdown in the pace of food group price increases (8.5 percent in August compared to 9.4 percent last July).
Last August, the National Institute of Statistics said that annual consumer price inflation fell to 7 percent in July, down from 7.3 percent in June.
In July, the central bank said it kept its key interest rate unchanged at 8 percent, a high level at which the government is seeking to restore the downward path to inflation.
In February 2023, inflation hit a 30-year high of 10.4 percent, according to the country’s historical consumer price inflation data.
The country suffered a severe economic crisis exacerbated by the repercussions of the outbreak of the Corona pandemic, and then the high cost of importing energy and basic materials, following the outbreak of the Russian-Ukrainian war on February 24, 2022.
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2024-09-07 21:44:06
Tunisia GDP growth 2024
Table of Contents
Tunisia’s Inflation Rate: A Declining Trend Amidst Economic Challenges
Tunisia, a North African country, has been grappling with rising inflation rates in recent times. However, according to recent data, the country’s annual consumer price inflation rate has been witnessing a decline for two consecutive months, reaching 6.7% year-on-year in August 2024. This decline is a welcome respite for the Tunisian economy, which has been struggling with high commodity prices and a significant tax burden.
As per the National Institute of Statistics, the inflation rate fell to 7% in July 2024, down from 7.3% in June 2024 [[2]]. This decline is attributed to the slowdown in the pace of food group price increases, which stood at 8.5% in August compared to 9.4% in July. Despite the monthly increase in prices, the annual inflation rate has been witnessing a decline, indicating a positive trend in the Tunisian economy.
However, it is essential to note that Tunisia’s economy is still facing significant challenges. The country’s budget deficit remains unchanged, despite a tax burden of 24.5% [[1]]. This highlights the need for the government to implement fiscal reforms to address the country’s economic woes.
Looking ahead, the average inflation rate in Tunisia is forecast to continuously increase between 2024 and 2029 by 1.6 percentage points [[3]]. This suggests that while the current decline in inflation rate is a positive development, the country still needs to be cautious and implement measures to address its underlying economic challenges.
Tunisia’s declining inflation rate is a welcome development, but it is crucial for the government to address the country’s economic challenges, including its budget deficit and high tax burden. Implementing fiscal reforms and taking steps to reduce the country’s dependence on commodity prices will be essential to ensure sustainable economic growth and stability in the long run.
Keyword: Tunisia, Inflation Rate, Economic Outlook, Budget Deficit, Commodity Prices, Fiscal Reforms.
References:
Tunisia economy 2024
Tunisia’s Inflation Rate: A Declining Trend Amidst Economic Challenges
Tunisia, a North African country, has been grappling with rising inflation rates in recent times. However, according to recent data, the country’s annual consumer price inflation rate has been witnessing a decline for two consecutive months, reaching 6.7% year-on-year in August 2024. This decline is a welcome respite for the Tunisian economy, which has been struggling with high commodity prices and a significant tax burden.
The Decline in Inflation Rate
According to the National Institute of Statistics, the inflation rate fell to 7% in July 2024, down from 7.3% in June 2024 [[2]]. This decline is attributed to the slowdown in the pace of food group price increases, which stood at 8.5% in August compared to 9.4% in July. Despite the monthly increase in prices, the annual inflation rate has been witnessing a decline, indicating a positive trend in the Tunisian economy.
Challenges Ahead
However, it is essential to note that Tunisia’s economy is still facing significant challenges. The country’s budget deficit remains unchanged, despite a tax burden of 24.5% [[1]]. This highlights the need for the government to implement fiscal reforms to address the country’s economic woes.
Looking Ahead
Looking ahead, the average inflation rate in Tunisia is forecast to continuously increase between 2024 and 2029 by 1.6 percentage points [[3]]. This suggests that while the current decline in inflation rate is a positive development, the country still needs to be cautious and implement measures to address its underlying economic challenges.
Economic Outlook
Tunisia’s real GDP growth rate is expected to remain stable, with an annual percent change of 1.9% [[2]]. The country’s GDP, current prices, stands at 54.71 billion U.S. dollars, with a GDP per capita, current prices, of 4.44 U.S. dollars [[2]]. These figures indicate a stable economic outlook, but one that requires careful management to address the country’s economic challenges.
Conclusion
Tunisia’s declining inflation rate is a welcome development, but it is crucial for the government to address the country’s economic challenges, including its budget deficit and high tax burden. Implementing fiscal reforms and taking steps to reduce the country’s dependence on commodity prices will be essential to ensure sustainable economic growth and stability in the long run.
References:
[[1]]https://www.fxempire.it/macro/tunisia/inflation-rate
[[2]]https://www.imf.org/external/datamapper/profile/TUN
[[3]]https://dataviz.vam.wfp.org/the-middle-east-and-northern-africa/tunisia/economic/inflation
