Tunisia: Prices still rising but at slower pace, says expert
Thus, inflation corresponds to the average growth of prices, weighted by average consumption.
He added that the inflation rate is calculated year-over-year and currently stands at 5.4% compared to the previous year, specifying that prices have not decreased, but rather that the pace of their increase has slowed.
In February 2023, Tunisia had reached a record inflation rate of over 10%, an unprecedented level in 40 years.
Speaking to Expresso on Monday, July 7, 2025, Zitouna emphasized that the inflation rate should be lower, noting that 5% remains a high rate for several reasons.
He explained that inflation is linked to the increase in the money supply, that is, the amount of money in circulation and in banks. Inflation occurs when the money supply exceeds production. In this case, the money supply increased by 15%, which poses a significant risk.
He noted that the inflation rate rose by 0.4% in June compared to May, and that the 5.4% rate is in comparison to June 2024. This figure is an average, as some prices increased more sharply, particularly **food products, with an approximate increase of 6%, especially fresh vegetables and fruits, whose prices rose by more than 20%.
This is due to higher demand than supply, problems in distribution channels and rising prices in cafés and hotels.
He stressed the need to reduce the inflation rate, while clarifying that a drop in prices can be more dangerous than an increase, but that any increase must remain moderate.
Zitouna mentioned the possibility of imported inflation, but believed that the dinar has remained relatively stable in recent years and that the real issue in Tunisia is the budget deficit.
He pointed out that banks borrowed 14.6 billion dinars from the Central Bank, highlighting the connection between this and inflation rates and reiterating that reducing inflation requires budgetary stability and a reduction of the deficit, according to Express FM.
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