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 131% in September 2020 to reach a dramatic level of 144.12% in September 2021.
In more details, the average inflation rate by September 2021 reached 132.98%, higher than the average inflation rate of 66.13% over the first nine months in 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 57.20% by September 2021, where “Owner-occupied” rental costs increased by 3% year-on-year (YOY) while the average prices of “water, electricity, gas, and other fuels” increased by 182.44% YOY.
Looking at the prices of “Food and non-alcoholic beverages” (20% of CPI), it surged by 280.86% yearly. In turn, the average prices of “Transportation” (13.1% of the CPI), “Health” (7.7% of the CPI) and “Restaurant and Hotels” (2.8% of CPI) all recorded hikes of an annual 356.91%, 212.08% and 293.36%, respectively, by September 2021.
We also note that the costs of “Clothing and Footwear” (5.2% of CPI) surged by 165.96% by September 2021, and the prices of “Communication” (4.5% of the CPI) increased by 32.38%.
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 140.46%, 213.72%, and 106.94%, respectively, by September 2021.
Moreover, the inflation rate is a major problem for the Lebanese economy, as it will have a disastrous effect on the social security. The government must react to stop this unbearable inflation rate, by taking measures that can stop the devaluation of the Lebanese lira against the dollar.
Inflation rate by September 2021