WB forecasts drop in inflation in Tunisia to 8% in 2024

In Tunisia, inflation is anticipated to decrease from 9.2% in 2022 to 8% in 2023, as per the recent data released on Thursday, October 5, 2023, in the World Bank’s report titled “Finding the right balance: Jobs and wages in times of crisis in the Middle East and North Africa region.”

The report reveals that food inflation remains notably high in Tunisia, standing at 15%, which is significantly higher than the overall inflation rate. This disproportionately affects the poorest and most vulnerable households, as they generally spend a larger portion of their income on food.

Globally, inflation is on a downward trend, although it still remains above its pre-pandemic levels. In the Middle East and North Africa (MENA) region, inflation is decreasing in the Gulf Cooperation Council (GCC) economies and oil-exporting developing countries, as stated by the WB.

It is noteworthy that in oil-importing developing countries, exchange rate depreciations are still contributing to inflationary pressures.

The report emphasizes that food price inflation negatively impacts food security, especially among the most vulnerable households. Additionally, there are strong upward pressures on domestic food prices. The WB’s global food price index was 44% higher in August 2023 than in June 2019. Although prices of agricultural products like wheat, corn, and vegetable oils decreased in the first half of 2023, their volatility increased during the summer, with a significant rise in the price of edible oils.

Food inflation, when measured in national currencies, is expected to remain high due to the ongoing pressure on the currencies of countries in the region, as mentioned in the report.