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 registered a historical high level of 260.21%. Unfortunately, inflation is historically high as 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, the Finance Ministry reported that the customs dollar rate will rise to LBP 86,000 per dollar for all types of imported goods, a level almost equivalent to the central bank’s Sayrafa rate (LL86,300 per dollar) by end of May, 2023.
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 182.2% by May 2023. Also, “Owner-occupied” rental costs increased by 208.3% year-on-year (YOY) and the prices of “water, electricity, gas, and other fuels” followed a significant increase by 174.06% YOY.
Looking at the prices of “Food and non-alcoholic beverages” (20% of CPI), it surged by 304.25% 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 259.93% and 303.2% respectively by May 2023. Also, “Restaurant and Hotels” (2.8% of CPI) increased yearly by 375.52% by May 2023.
In the same token, costs of “Clothing and Footwear” (5.2% of CPI) surged by 285.61% by May 2023, and the prices of “Communication” (4.5% of the CPI) increased by 599.67% as mobile phone bills are currently charged in dollars at Sayrafa rate.
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 287.8%, 464.2%, and 223.59%, respectively, by May 2023.
Inflation rate by May 2023
Source: CAS, BLOMINVEST
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