Inflation Easing - But Further Monetary Tightening Ahead

December 2006 | Economic Analysis

The Central Bank of Tunisia kept its benchmark interest rate unchanged at 5.25% in its November meeting on account of indications of easing inflationary pressures. In September, the central bank raised rates by 25 basis points in September from 5% to 5.25%, partly as a result of high energy import costs which led the government to cut fuel subsidies, causing soaring prices. Average inflation stood at 4.62% y-o-y in the year to November compared to 2.02% in 2005. The consumer price inflation index (CPI) remained at 4.7%y-o-y in both September and October and eased by 0.25% m-o-m in November,

If you would like to subscribe to North Africa Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to North Africa Monitor please click on the trial link below.