Tunisia’s CPI inflation quickens to 3.6% y/y in May

By bne IntelliNews June 5, 2016

Rising food and housing prices boosted Tunisia’s CPI inflation to a five-month high of 3.6% y/y in May from 3.4% annual expansion the preceding month, the statistics office INS said.

In January-May 2016, the CPI index grew 3.4% y/y, remaining well in single digits and the c-bank’s comfort zone. The central bank is sustaining its wait-and-see monetary stance by holding the benchmark rate unchanged at 4.25%, seeking to spur GDP growth amid still anchored inflation.

In monthly terms, the CPI increased 0.6% in May.

Food and beverages prices rose 1.0% m/m in May, fuelling the annual growth to a six-month high of 2.9% from 1.8% y/y in April. Poultry prices climbed 9.1% m/m in May amid strong demand. The fasting month of Ramadan started on June 5 meaning local demand for food items will soar and thus most likely fuel the CPI inflation further in the near term. Fresh vegetable prices grew 3.1% m/m in May.

Housing and utilities prices (14% of the basket) rose 0.5% m/m in May, lifting the annual increase to 4.8% from 4.6% y/y in April. Rents charges climbed 7.0% y/y during the month on strong local demand.

Transport prices rose 1.2% y/y, easing from 1.5% y/y in April as the government liberalised the fuel market.

  May-15 Apr-16 May-16
CPI (y/y) 5,3% 3,4% 3,6%
Food/beverages 6,3% 1,8% 2,9%
Tobacco 9,9% -0,5% -0,6%
Clothing/Footwear 7,2% 8,1% 7,0%
Housing/utilities 4,5% 4,6% 4,8%
Furniture/equipments 5,4% 5,3% 5,0%
Health 3,5% 2,3% 2,3%
Transport 3,1% 1,5% 1,2%
Communications -4,2% -1,4% 0,0%
Recreation/culture 3,2% 1,9% 1,3%
Education 4,7% 10,2% 10,1%
Rest/Hotels 11,5% 4,8% 4,2%
Other serivces 6,5% 6,2% 6,3%
Source: INS      

Related Articles

Lebanon becomes European Bank for Reconstruction and Development shareholder

Lebanon has become the fifth member country from the Southern and Eastern Mediterranean (SEMED) region to join the European Bank for Reconstruction and Development (EBRD), becoming a shareholder with ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

US lifts laptop ban on Turkish Airlines flights as of July 5

Passengers boarding an early morning July 5 Turkish Airlines (THY) flight to John F Kennedy International Airport in New York were allowed to include laptops and electronic devices larger than a ... more