Inflation in Tunisia has slightly increased to 7.3% in June, compared to 7.2% in May, driven by a rise in food prices. The Tunisian National Institute of Statistics reported in its monthly statement that the consumer price index rose by 0.5% last June. This increase was due to a 0.4% increase in food prices, a 1.7% increase in the prices of clothing and footwear, and a 0.9% increase in restaurant sector prices.
Tunisia has been grappling with economic challenges, marked by fluctuating inflation rates and stagnant economic growth. Over recent years, inflation has been a persistent issue, rising from around 5.6% on average in the last decade to peaks of 8.3% in 2022 due to global commodity price increases influenced by geopolitical tensions and economic disruptions.
The economy has been heavily affected by various external and internal pressures, including increased commodity prices and a significant fiscal deficit, which averaged 6.0% of GDP from 2012 to 2022. The fiscal pressures are compounded by a high unemployment rate, which averaged 15.9% over the same period, indicating a strained labor market.
Additionally, the Tunisian GDP growth has been muted, with an average annual growth rate of around 1.5% over the past decade. The economic structure is heavily reliant on services, which constituted 68% of the GDP in 2021, with less significant contributions from manufacturing and agriculture.
This economic situation has put considerable stress on the cost of living and purchasing power of the Tunisian population, particularly as the inflation rate reached as high as 9.3% in 2023. Despite these challenges, Tunisia has made efforts to stabilize its economy, including measures to improve fiscal policies and enhance foreign exchange reserves.
