Policy Briefs
Winners and Losers of Price Inflation in Tunisia
No.
PB155
Publisher
ERF
Date
July, 2025
Topic
E. Macroeconomics and Monetary Economics
In a nutshell
- The global inflation episode of 2021-23 highlighted, once again, the importance of understanding the sources of inflation, especially in developing countries.
- The poorest income quintiles are disproportionately affected by rising prices. Hence, these low-income groups face a double burden: as employees, their wages contribute the least to inflation, and as members of the most disadvantaged social strata, they experience a greater impact from inflation than the average income earner.
- There is suggestive evidence of a positive relationship between the extent of inflation due to profits per unit of capital and market concentration. This suggests that policies promoting competition can be important in mitigating inflationary pressures.
Authors
Fatma Marrakchi Charfi
Professor of Economics and Director of the...
Authors
Massimiliano Cali
Senior Country Economist, World Bank in Tunisia