Lebanon’s average consumer price index (CPI) rose 4.6% y-o-y to reach 98.73 by February 2017 as 12 out of its 13 components posted yearly upturns. Inflation during the first two months of the year was mostly driven by utilities and transportation sub-indices that climbed by respectively 8.4% and 8.1%. In fact, the recovery of global oil prices led to the increasing prices of transportation, which constitutes 13.10% of the CPI, and the utilities sub-index which encompasses water, electricity, gas and other fuels (grasping a weight of 28.4% of the CPI). In addition, Food and non-alcoholic beverages added a marginal 0.6% y-o-y over the first two months of 2017, while clothing and footwear substantially rose by an average of 10.3% over the same period. On a different note, the health sub-index was the only component to show contracting prices after recording a 1.2% yearly slip by February 2017.
On a monthly basis, the consumer price index inched 0.6% up in February 2017 from the previous month. In details, the 4.5% increase of the clothing and footwear sub index was the most highlighted in February compared to minimal upticks or stagnating prices in other CPI components.
In the coming period, consumer prices may witness further increases following the introduction of new taxes to fund the awaited new salary hike for civil servants and public and private teachers.
Monthly Inflation Levels (Y-o-Y)
Source: CAS