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Update: Tuesday, 6 January 2009    

Statistics regarding inflation in Algeria are not exact

Wednesday Mar 07 2007.

Nouredine Laghlil, the Algerian financial analyst and stock exchange expert, resident in Sweden, has unveiled that official figures and statistics about economical indicators are not accurate, namely those related to inflation rate concerning jobless rate.

The same expert said that in April 2006 an Algerian Minister revealed, in a press statement, that unemployment rate had drawn back from 30% to 15% whereas growing rate had moved from 1.5% to 5.3% and then inflation rate had been lowered to 1.5% in 2005.

The expert thinks there are reserves and a doubts concerning these evaluations though they are based on economical objective considerations, pointing that it had been proved that when growth rate rises in some country, we get a mechanic impact relating to inflation rate within the same country, so, there is a causality relationship between unemployment rate and inflation which economist call “Philips curve” ; as a result, when employment’s rate draws back, the inflation rate increases and vice versa.

Wage-earning workers are the first victims of inflation rate, which remain very low and artificial i.e. when we count wages’ rate we take inflation rate, unemployment rate, work productivity and appropriate arrangements of economical policy into consideration. In addition, inflation rate estimated at 1.5% and work productivity drop are the front justifications International monetary fund (FMI) had based on to reject wage raise issue in Algeria.

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