According to the Central Administration of Statistics (CAS), consumer prices in Lebanon fell by 3.90% in November since the Consumer Price Index (CPI) declined from 100.50 in November 2014 to 96.60 in November 2015. On a year-to-date basis, consumer prices fell by 2.71% on account of subdued energy prices but also on account of a weaker euro, especially since around 40% of Lebanon’s imports come from Europe. The common European currency lost 13% since year start, going from €/$ 1.2098 in December to €/$ 1.0565 in November 2015.
November’s deflation was mainly the result of to lower energy prices. Due to global oversupply, the price of Brent crude oil slashed annually by a yearly 50.29% from $88.26per barrel in November 2014 to $43.87 per barrel in November 2015. This was reflected in Lebanon by the 10.70% y-o-y slump in the price of transportation, a component with a weight of 13.1% in the CPI. With cheaper oil, the price of water, electricity gas and other fuels (11.9% weight of CPI) also declined by 18.10% in November 2015. In addition, Health prices, with a weight of 7.8%, downturned by 6.82% yearly.
The basket of food and non-alcoholic beverages is also responsible for November’s deflation, declining by 2.12% y-o-y and representing 20.6% of the CPI.
In spite of lower energy and F&B prices, some baskets of goods and services witnessed price upturns in November. Education prices, with a weight of 5.9% in the CPI, rose by a yearly 1.52% while the prices of clothing and footwear, with a weight of 5.4% in the CPI, increased by 3.48%.
Yearly Changes in the CPI and its Sub-Indices