Consumer prices maintained the downward trend during the first two months of 2016 as imported deflationary pressures are still weighing on the prices of Lebanese goods and services since 2015. In this context, the Consumer Price Index (CPI) dropped by an average of 2.85% y-o-y by February 2016.
According to the Central Administration of Statistics (CAS), the CPI decreased by 2.94% y-o-y in February 2016 as the index dropped from 97.20 points in February 2015 to 94.35 points by the end of February 2016. The depreciation of the euro, the local and global economic slowdown and the great decline in oil prices were the primary reasons behind this deflation.
In terms of CPI’s components, food and non-alcoholic beverages (20.6% of CPI) declined by 2.05% y-o-y in February 2016. Moreover, transportation (13.1% of CPI) and water, electricity, gas & other fuels (11.9% of CPI), witnessed yearly drops of 4.83% and 16.54%, respectively. The other 2 sub-indices that waned were health (7.8% of CPI) and communication (4.6% of CPI), posting a 4.06% and 0.36% y-o-y declines, respectively.
However, the education sub-index, constituting 5.9% of the CPI, augmented annually by 1.49% in February 2016.Furthermore, clothing and footwear (5.4% of CPI) and restaurants & hotels prices (2.6% of CPI) went up by 3.18% and 3.02% y-o-y, respectively. In addition, the actual rent sub-index for households (old and new rent), with a stake of 3.4% of the CPI, increased by an annual 1.36%.
Monthly Changes in Consumer Prices Levels in Lebanon (Y-o-Y)