Sticky High Inflation In Lebanon Reached 189.67% By February 2023

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 inflation rate eased from a 214.59% in February 2022 to register softer levels of 189.67% in February 2023, however higher than the previous month of January 2023 at 123.53%. Unfortunately, inflation remains at a historical elevated level and is expected to further increase in the months ahead as Lebanon’s economy seems gradually moving towards a fully dollarized economy especially after supermarket adopting dollar prices.

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 77.93% by February 2023. Also, “Owner-occupied” rental costs increased by 21.57% year-on-year (YOY) and the prices of “water, electricity, gas, and other fuels” followed a significant increase by 206.69% YOY.

Looking at the prices of “Food and non-alcoholic beverages” (20% of CPI), it surged by 260.54% 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 196.76% and 315.46% respectively by February 2023. Also, “Restaurant and Hotels” (2.8% of CPI) increased yearly by 274.39% by February 2023 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 274.33% by February 2023, and the prices of “Communication” (4.5% of the CPI) increased by 379.80% as mobile phone bills are currently charged in dollars as of Sayrafa rate which is continuously increasing.

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 266.06%, 306.05%, and 181.20%, respectively, by February 2023.

Inflation rate by February 2023

Sticky High Inflation In Lebanon Reached 189.67% By February 2023


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