Macroeconomic Forecast Tunisia

Headline inflation in Tunisia increased by 4.2% y-o-y in 2011. Inflation will remain elevated in the medium term, and we reaffirm our forecast that it will come in at 4% by end 2012. This is due to supply shortages in the housing market, modest prospects for a diminution of food prices, and the inability for the government to increase fuel subsidies.

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