24 Hrs
Source:
تونزي تيليغراف
Tunisie Telegraph: Inflation and Government Response
The Arab international expert Ben Bouhali concluded that Tunisia is facing a severe economic paradox. While the inflation rate decreased to 5.1% in July, this does not mean that Tunisians' suffering from the rising cost of living has ended, especially since inflation measures the rapid increase in prices rather than the actual levels of prices after years of cumulative hikes. He points out that each household is affected differently depending on its spending patterns, with low-income families suffering more from increases in food, healthcare, and transportation costs. He also explains that raising interest rates alone is no longer effective in combating inflation, particularly when price rises are driven by increased costs, such as energy and medicines, which cannot be addressed solely through monetary policy. The Tunisian economy suffers from a fragile balance between high inflation and weak growth, as the government's substantial borrowing reduces resources available for private investment, slowing down growth and increasing social pressures. He concludes that the real battle involves structural reforms, including energy subsidies, the budget, debt management, production, and investment, to achieve a balance between fighting inflation and stimulating growth, with a focus on protecting lower-income groups.
Size: 120%Text Size
Notice: This Is an AI-Generated Summary
Comments (0)