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 jumped from 133.5% in November 2020 to register a record high of 201.07% in November 2021.
In more details, the average inflation rate by November 2021 reached 142.86%, higher than the average inflation rate of 78.68% over the same period 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 80.69% by November 2021, where “Owner-occupied” rental costs increased by 2.44% year-on-year (YOY) while the average prices of “water, electricity, gas, and other fuels” soared by 297.35% YOY.
Looking at the prices of “Food and non-alcoholic beverages” (20% of CPI), it surged by 357.95% 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 579.90%, 374.27% and 342.23%, respectively, by November 2021.
In the same token, costs of “Clothing and Footwear” (5.2% of CPI) surged by 238.17% by November 2021, and the prices of “Communication” (4.5% of the CPI) increased by 35.52%.
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 208.03%, 254.15%, and 136.43%, respectively, by November 2021.
Undoubtedly, inflation skyrocketed amid the removal of fuel subsidies in September 2021 as the Central Bank is not able anymore to subsidize fuel imports due to diminishing of foreign currency reserves. Moreover, higher prices also reflect the Lebanese exchange rate deterioration that had overpassed the 26,000 LBP/USD during the last two months.
Inflation rate by November 2021
Source: BlomInvest, Central Administration of Statistics (CAS)