The recent drop in the inflation rate in Tunisia does not change the daily life of citizens, according to the economist and academic Ridha Choukandali.
Intervening on Jawhara FM, the expert believes that this development is above all a signal intended for international institutions.
“The drop in inflation has no meaning for Tunisians. On the other hand, it is crucial for donors, because it gives the illusion of an effective monetary policy, especially through the increase in interest rates, “he explains. According to him, the increase in the key rate, which mechanically led to this decline in inflation, does not reflect real improvement in the economic situation.
Prices always increasing
Despite this drop in the inflation rate, prices for basic necessities continue to climb, the economist underlines. “It is these prices that directly impact Tunisians on a daily basis, and they keep increasing,” he deplores.
If this decision remains important to restore the image of Tunisia to investors and promote investment, it arrives late and remains insufficient, according to Choukandali. He believes that the reduction of the key rate should have been more marked, reaching 75 base points instead of the observed decline.
A change in the role of the central bank?
The economist finally notes that this decision is part of a particular political context, where the President of the Republic wishes to review the role of the Central Bank. This desire could deeply modify the mechanisms of economic regulation in the country.
If the drop in the inflation rate can relieve certain indebted households at variable rate, it is not enough to meet the expectations of Tunisians in the face of the high cost of life.
