According to the Central Administration of Statistics (CAS), the Consumer Price Index (CPI), which gives an overview about the evolution of goods and services’ prices consumed by households, revealed that Lebanon’s monthly inflation rate soared from 46.6% in April 2020 to reach a dramatic level of 110.24% in April 2021.
In more details, the inflation rate in April 2021 registered a higher rate than the average inflation rate of 84.27% in year 2020. Accordingly, all sub-components of Lebanon’s consumer price index (CPI) increased over the studied period.
In turn, the cost of “Housing and utilities”, inclusive of water, electricity, gas and other fuels (grasping 28.4% of the CPI) added a yearly 25.6% by April 2021, where “Owner-occupied” rental costs decreased by 5.99% year-on-year (YOY) while the average prices of “water, electricity, gas, and other fuels” increased by 87.03% YOY.
Looking at the prices of “Food and non-alcoholic beverages” (20% of CPI), it surged by 207.78% yearly. In turn, the average prices of “Transportation” (13.1% of the CPI), “Health” (7.7% of the CPI) and “Education” (6.6% of CPI) all recorded hikes of an annual 252.03%, 30.76% and 9.32%, respectively, by April 2021.
We also note that the costs of “Clothing and Footwear” (5.2% of CPI) surged by 347.53% by April 2021, and the prices of “Communication” (4.5% of the CPI) increased by 41.64%.
Worth mentioning, prices of “Furnishings and household equipment” (3.8% of CPI), “Alcoholic beverages and tobacco” (1.4% of CPI), and Recreation, amusement, and culture” (2.4% of the CPI) increased by 460.53%, 203.29%, and 123.06%, respectively, by April 2021.
Lebanon’s soaring inflation rate was led mostly by the Lebanese pound devaluation. This increase is in line with expectations, notably in light of the devastating current situation. This phenomenon will continue to be seen in the coming period driven in particular by a rise in unsubsidized fuel and diesel.
Inflation rate by April
Source: BlomInvest, Central Administration of Statistics (CAS)