Tunisia: Inflation outpaces wages, economists warn
Translated from French, summarized and contextualized by DistantNews.
TLDR
- Tunisia has published government decrees for salary increases in the public sector for 2026-2028, affecting various categories of employees.
- Economists warn that these increases are insufficient to combat persistent inflation, which is eroding purchasing power.
- The gap between wage growth and the rising cost of living is widening, with inflation projected to reach 7-10% in 2026.
Tunisia is grappling with a persistent economic challenge: inflation is outpacing wage growth, significantly diminishing the purchasing power of its citizens. While the government has published decrees for salary increases in the public sector for the years 2026, 2027, and 2028, economists like Ridha Chkandali argue these hikes are inadequate. Chkandali points out that the cost of living, particularly for essential goods, continues to rise at a faster pace than wages. This situation is a cumulative phenomenon, meaning prices don't decrease but merely slow their ascent, leading to a continuous erosion of living standards. Projections from the International Monetary Fund suggest inflation could reach 7% in 2026, potentially rising to 10% if regional tensions escalate. The stark reality is illustrated by the declining purchasing power of the minimum wage, which can now buy significantly less than in previous decades. Without a mechanism to index salaries to inflation, the middle class is shrinking, and the state's social role is increasingly strained. Enhancing public services is seen as a crucial step to support citizens sustainably.
le rythme de lโinflation dรฉpasse celui de la progression des salaires, ce qui entraรฎne une รฉrosion progressive du pouvoir dโachat et une dรฉtรฉrioration du niveau de vie de plusieurs mรฉnages.
Originally published by La Presse in French. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.