TUNIS (Reuters) - Tunisia’s annual inflation rate rose to 6.9 percent in January, the highest level in 20 years, up from 6.4 percent in December, the statistics office said on Tuesday.
The government raised prices for some goods and imposed new taxes on Jan. 1 as part of austerity measures aimed at reducing the budget deficit. The measures triggered violent protests that lasted for several days before abating.
The central bank raised its main interest rate from 4.75 percent to 5.00 percent last May as it tried to halt a slide in the dinar currency, which has hit historic lows against the euro and the dollar.
Financial sources have told Reuters the bank is likely to raise rates again in the next two months to curb inflation.
Reporting By Tarek Amara; Editing by Ulf Laessing and Hugh Lawson