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 annual inflation rate peaked in March 2023 and registered a historical all-time high level of 263.84%. Unfortunately, the inflation headline was historically the highest one registered in Lebanon as beginning March 1, 2023, Lebanon’s supermarket started to list their prices in US dollars, mainly due to the rapid deterioration of the domestic currency against the dollar. In addition, customs dollar rate has been adjusted from 15,000 LBP/USD to 45,000 LBP/USD which added more pressure on prices.
In more details, the cost of “Housing and utilities”, inclusive of water, electricity, gas and other fuels (grasping 28.4% of the CPI) added a yearly 130% by March 2023. Also, “Owner-occupied” rental costs increased by 91.62% year-on-year (YOY) and the prices of “water, electricity, gas, and other fuels” followed a significant increase by 211.82% YOY.
Looking at the prices of “Food and non-alcoholic beverages” (20% of CPI), it surged by 352.34% 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 300.75% and 373.90% respectively by March 2023. Also, “Restaurant and Hotels” (2.8% of CPI) increased yearly by 385.54% by March 2023.
In the same token, costs of “Clothing and Footwear” (5.2% of CPI) surged by 358.91% by March 2023, and the prices of “Communication” (4.5% of the CPI) increased by 620.80% as mobile phone bills are currently charged in dollars as of Sayrafa rate as fees are priced at Sayrafa rate which jumped during the month of March from 45,400LBP/USD to end up the month at a high of 90,000 LBP/USD.
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 358.45%, 450.97%, and 210.60%, respectively, by March 2023.
Inflation rate by March 2023
Source: CAS, BLOMINVEST
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