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 56.5% in May 2020 to reach a dramatic level of 119.83% in May 2021.
In more details, the average inflation rate by May 2021 reached 138.18%, higher 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 34.70% by May 2021, where “Owner-occupied” rental costs increased by 4.48% year-on-year (YOY) while the average prices of “water, electricity, gas, and other fuels” increased by 90.65% YOY.
Looking at the prices of “Food and non-alcoholic beverages” (20% of CPI), it surged by 226.11% 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 255.75%, 26.28% and 10.22%, respectively, by May 2021.
We also note that the costs of “Clothing and Footwear” (5.2% of CPI) surged by 302.77% by May 2021, and the prices of “Communication” (4.5% of the CPI) increased by 35.12%.
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 446.41%, 198.22%, and 166.18%, respectively, by May 2021.
Soaring goods’ prices and acute shortages of fuel is leading to widespread unrest among the Lebanese people. In fact, Lebanese lives are threatened by an inevitable hyperinflation that is expected to intensify in the upcoming period driven gradually by the rise of subsidized of fuel and diesel, and the absence of any corrective measures to the severe economic crisis.
Inflation rate by May
Source: BlomInvest, Central Administration of Statistics (CAS)