Tunisia-The Central Bank of Tunisia expects a slight decline in inflation rates in 2020

The Central Bank of Tunisia revealed that inflation rates would fall to 6.7 % in 2020.A slight drop from 2019 that merely witnessed an inflation rate of 7% and 7.3 % in 2018.

In it’s May report on “Economic, Financial and Medium-term Prospects”, The Central Bank of Tunisia attributed this drop to the increase in consumer prices. Moreover, The inflation rate of raw materials is reasonably expected to stay high, at 4.2 % in 2020 against 4.6 % in 2019. The increase is due to a rise in energy prices.

According to the bank’s reports, the increase in food prices for this year’s trimester, are expected to inevitably fall. The estimated 9.7 % rise is credited to the marked increase in production costs. It’s worthy to mention that the increase in high-energy prices correlates with the cost of distribution and the large proportion of the production necessities, which are imported.

Predictions properly indicate that the core inflation typically measured by the consumer price index with the notable exclusion of fresh and priced products has carefully recorded a relatively slight improvement. After having reached a record high of 8.2 % in 2018, it is expected to fall to 7.5 % in 2019 and 7.6 % in 2020