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Inflation in the Mediterranean


Written by Gérard Tur on Thursday, December 2nd 2021 à 16:40 | Read 242 times


The situation varies from worrying to dramatic depending on the country.


Outside the euro zone, inflation and falling currency values go hand in hand. Photo DR.
Outside the euro zone, inflation and falling currency values go hand in hand. Photo DR.
MEDITERRANEAN. Growth linked to a strong upturn in consumption, disorganisation of the logistics chain, shortage of raw materials... inflation is spiralling out of control in the Mediterranean countries. In Europe, Eurostat unveiled on 30 November rates not seen for thirty years. The euro zone is seeing inflation rise by an average of 4.9% over one year (November 2020 to November 2021), with an impressive +27% for energy. A peak? More like a plateau, according to economists, for whom the overheating will last several months. The International Monetary Fund and the World Bank estimate that the situation should return to normal by mid-2022.

The southern European countries are doing rather well compared to their northern neighbours, who are almost all exceeding 6.5% inflation.
Spain, however, has a worrying +5.6%. The streets are beginning to rumble in a country where the minimum wage has risen by 1.6% (€950) while meat has increased by 7%, oil by 26% and electricity by almost 63%.

France and Italy limited the breakage to +3.4% and +4%. Portugal (+1.8%), Malta (+1.4%) and even Greece (+2.8%) are good performers.

To the east of the Mediterranean, Turkey (+20%) and Lebanon (+173%) are paying a high price for their governments' economic policy mistakes. Egypt did not reach such heights but remains overheated (+8%).

In the Maghreb, Algeria is close to 6% inflation in 2021 due to the increase in raw material prices and the depreciation of the dinar. The Central Bank of Tunisia forecasts 5.6% and Morocco 1% to 1.5%.



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