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

Trump warns US pullout from "horrible" Iran nuclear deal might still be ahead

US President Donald Trump on October 16 warned that the termination of the Iran nuclear deal is still a clear possibility even though he ... more

Pentagon chief suggests staying in Iran nuclear deal is in US interests

US Defence Secretary Jim Mattis on October 3 told the Senate Armed Services Committee that it currently appears to be in the strategic interest of Washington to remain in the Iran nuclear deal. ... more

Iran will in six years accept stricter nuclear inspections if US behaves, says foreign minister

Iran’s foreign minister has said the country is willing to formally accept a tougher nuclear inspection regime in six years. However, Mohammad Javad Zarif continued to rule out any renegotiation of ... more