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 remained sticky at high levels as it recorded a yearly 123.21% by February 2024. Moreover, the monthly CPI surge between January and February 2024 stood at 1.06%. The disruptions in the Red Sea have led to supply chain challenges, resulting in elevated inflationary pressures. As a result, the escalated costs associated with shipping, insurance, and raw materials could compel firms to adjust their pricing strategies upwards at an accelerated pace. Unfortunately for Lebanon, the country is already struggling with persistent high inflation since late 2019, thus it would encounter heightened difficulties in preserving price stability amid prolonged economic and political uncertainty.
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 175.59% by February 2024. Similarly, “Owner-occupied” rental costs increased by 317.29% year-on-year (YOY) and the prices of “water, electricity, gas, and other fuels” followed a significant increase by 67.77% YOY.
Looking at the prices of “Food and non-alcoholic beverages” (20% of CPI), it surged by 103.35% 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 65.01% and 76.27% respectively by February 2024. Also, “Restaurant and Hotels” (2.8% of CPI) increased yearly by 81.47% by February 2024.
Furthermore, costs of “Clothing and Footwear” (5.2% of CPI) surged by 75.14% while the prices of “Communication” (4.5% of the CPI) increased by 95.51% by February 2024. 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 41.51%, 87.06%, and 92.99%, respectively, by February 2024.
Inflation rate by February 2023
Source: CAS, BLOMINVEST
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