Tunisia’s inflation rate rises to 5.4 percent in May

Tunisia’s annual inflation rate rose for the second consecutive month.

Inflation had slowed to 5 percent in March, its lowest level since December 2011, but it rose again to 5.2 percent in April.

Friday’s data, released by the statistics institute, showed that food and drink prices rose 7.2 percent in May, accelerating from a 6.8 percent rise in April.

Central bank governor Chadli Ayari told Reuters in March that he expected the inflation rate would stand at between 5.2 and 5.3 percent by the end of 2014, down from the average of 6.1 percent last year. This would take some pressure of the central bank to raise interest rates.

The central bank raised its benchmark interest rate to 4.5 percent in December from 4 percent, citing inflationary pressures. The bank does not target a particular inflation rate but says the most that should be tolerated is 5 percent.

Reuters