Econostrum | Economic News in the Mediterranean

Inflation in the Mediterranean

Written by Gérard Tur on Thursday, December 2nd 2021 à 16:40 | Read 253 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%.

In the same section
< >


About is an independent media that deals with the daily economic news of the countries bordering the Mediterranean. Economic cooperation, business news by sector (Industry, Services, Transport, Environment, Society/Institutions), thematic files, airport news, airlines and shipping companies (new destinations)... are treated and analysed by a team of journalists present in the Mediterranean basin. Subscribe to To be the first to know, with unlimited access to all articles. To receive the weekly newsletters and special newsletters sent as soon as our files are published. Automatically renewable subscription, but the reader keeps control of it or yearly subscription. For individuals or professionals...