Prices of Essential Products and Services in Tunisia: A Mixed Bag in 2024
Although prices slowed down in 2024 compared to 2023, last year was a rally for essential products and services in the daily life of Tunisians. We have the details of the average evolution of different product classes.
Stable Prices for Publicly Regulated Services
Some products and services did not budge, including electricity, gas, and other fuels, hospital services, and postal services. Others saw minimal changes, such as telephone services (+1.5%) and milk, cheese, and eggs (+1.6%). The common thread among these is that they are either entirely or mostly publicly offered, with regulated prices.
The State's Efforts to Curb Price Hikes
The State is trying to slow down price increases as much as possible, even if it means compromising its budget balances. Last year, it was fortunate to have oil prices below expectations and a generally favorable global context for major raw materials.
Social Policy and Purchasing Power
This social policy aims to protect the most vulnerable and ensure a minimum level of purchasing power, even if it is eroding. Recent salary increases are a positive development, but far from sufficient. We note that food prices continue to soar, with no signs of real relief in sight. We have a major supply issue, which is a direct consequence of water stress. As long as local vegetable production has not resumed and meat prices have not returned to affordable levels, it will be difficult to quickly reach targeted inflation levels.
Tax Increases and Labor Costs: Another Driver of Inflation
The rise in taxes and labor costs is another driver of this dynamic. The latest example is that of doctors, who announced it in a statement, but not other professions and artisans. A price drop is not expected anytime soon, nor is a decrease in interest rates. We must be aware of this reality.
