Tunisia Declares War on Inflation, Vowing to Shield Citizens’ Purchasing Power

The Tunisian government has placed the defense of household budgets and the strict control of prices at the forefront of its national agenda, following a reported milestone in its battle against inflation.

Official data released Monday by the National Institute of Statistics (INS) shows annual inflation fell to 5.3% for the full year 2025, down from 7% in 2024. The state is now targeting a stabilization of the rate at this level for 2026, marking a significant policy priority.

A Turning Point in 2025

The INS Household Consumer Price Index reveals 2025 as a pivotal year. Despite persistent pressures that pushed food prices up 6.1%, a sharp decline in edible oil costs (-8.14%) and a year-end core inflation rate—which excludes volatile food and energy—holding steady at 4.9% signaled a positive shift.

This success is attributed to a mix of favorable external conditions and deliberate domestic policy. The absence of major global commodity shocks, a stable exchange rate for the Tunisian dinar, and improved national production created a favorable backdrop. These factors were bolstered by a cautious monetary policy from the Central Bank of Tunisia, which executed two key interest rate cuts in 2025.

Authorities also point to strict market monitoring, a freeze on regulated fuel prices, and anti-speculation efforts as key tools.

The Road Ahead: Vigilance and Digitization

For 2026, the government’s strategy, outlined in its Economic Balance Report, hinges on maintaining relentless pressure. Plans include bolstering national production, ensuring adequate reserves of essential goods, and intensifying the crackdown on monopolies and price speculation.

A major tactical shift will be the accelerated digitization of market monitoring and distribution channels to enhance transparency and control.

Prime Minister Sarra Zaafrani Zenzri has framed the issue in stark terms. “Controlling prices and preserving citizens’ purchasing power is the state’s top priority,” she stated during parliamentary discussions last November.

While acknowledging progress, she warned that prices remain burdensome for citizens. “We will continue efforts to dismantle speculation and monopolies,” Zenzri emphasized, pledging intensified inspections “across all production and distribution stages.”

The government asserts that integrating economic and social policies with sectoral strategies is essential to lock in the gains. The overarching goal is to cement the downward inflation trend, thereby strengthening economic competitiveness and promoting broader equitable growth.

TuunisianMonitorOnline (NejiMed)

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