By Tristan Dreisbach | Apr 19 2013Economy ,eggs ,Food Prices ,inflation ,Potatoes ,
The Tunisian government announced yesterday a set of new price controls that will reduce prices of staple foods. The policy change will take effect on Monday, according to state press agency TAP.
The price controls will be implemented, depending on the product, either through setting maximum legal prices or regulating the profit margin permissible for producers of certain goods.
The products covered by yesterdayâ€™s decision are bottled water, eggs, potatoes, tuna, vegetable oils, cheese, and other dairy products. Prices on personal hygiene and health products will also be cut.
The price controls may allay some consumer concerns about the state of the economy. Inflation has been very high in Tunisia since the January 2011 revolution, now reaching 6.5 percent, according to Trading Economics. This is the highest inflation rate in 16 years. The unemployment rate, while falling over the past several months, still remains over 16 percent.
The new controls will result in price drops ranging from five percent for dairy products to 40 percent for potatoes, according to news agency AFP.