According to the Central Administration of Statistics (CAS), the Consumer Price Index (CPI), representing the evolution of goods and services’ prices consumed by households, revealed that Lebanon’s monthly inflation rate jumped from 144.12% in September 2021 to register higher levels of 162.47% in September 2022.
In details, the cost of “Housing and utilities”, inclusive of water, electricity, gas and other fuels (grasping 28.4% of the CPI) added a yearly 90.72% by September 2022. Also, “Owner-occupied” rental costs increased by 6.04% year-on-year (YOY) and the prices of “water, electricity, gas, and other fuels” followed a significant increase by 341.71% YOY as subsidies were removed by the Central Bank and prices went up sharply on the global market due to the war in Ukraine.
Looking at the prices of “Food and non-alcoholic beverages” (20% of CPI), it surged by 208.07% yearly. In turn, the average prices of “Transportation” (13.1% of the CPI) and “Health” (7.7% of the CPI) recorded hikes of an annual 262.45% and 282.563% respectively by September 2022. Also, “Restaurant and Hotels” (2.8% of CPI) increased yearly by 214.28% by Sepember 2022 as the hospitality sector had been authorized to adopt prices listed in dollars.
In the same token, costs of “Clothing and Footwear” (5.2% of CPI) surged by 162.9% by September 2022, and the prices of “Communication” (4.5% of the CPI) increased by 231.62%.
Finally, 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 150.65%, 145.47%, and 151.15%, respectively, by September 2022.
Since July 2020, Lebanon has been recording triple-digit inflation rates, thus, in September, the country witnessed its 26th consecutive months of triple-digit inflation. Indeed, the country’s hyperinflation continues to drive up purchasing costs, mainly driven by the devaluation of the Lebanese pound. Consequently, poverty rate is rising in Lebanon, without access to basic services such as electricity and safe drinking water, citizens have less access to education and suffer from poorer health and endemics.
Inflation rate by September 2022
Source: CAS, BLOMINVEST