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 70.36% by March 2024, though less than the rates of 2021 – 2023. Meanwhile, the continued escalating political and military tensions in the Middle East and its effect on Red Sea with no resolution seen in the near future pose a significant threat to the potential closure of the Bab el Mandeb Strait, a vital global maritime passageway. Such an occurrence is causing supply chain disruptions, an upturn in shipping costs, and consequently, elevated consumer prices. The implications of these developments may result in a broader surge in inflation. As for Lebanon, already struggling with the challenges of persistent inflation since late 2019, it would encounter heightened difficulties in preserving price stability amid prolonged economic uncertainty.
In details, it is worthwhile to note that Education (6.6% of CPI) increased by 589.23% YOY. Also, the cost of “Housing and utilities”, inclusive of water, electricity, gas and other fuels (grasping 28.4% of CPI) added a yearly 108.31% by March 2024. Similarly, “Owner-occupied” rental costs increased by 174.96% year-on-year (YOY) and the prices of “water, electricity, gas, and other fuels” followed a significant increase by 48.47% YOY.
Looking at the prices of “Food and non-alcoholic beverages” (20% of CPI), it surged by 51.37% yearly. In turn, the average prices of “Transportation” (13.1% of CPI) and “Health” (7.7% of CPI) recorded hikes of an annual 13.22% and 45.01% respectively by March 2024. Also, “Restaurant and Hotels” (2.8% of CPI) increased yearly by 30.86% by March 2024.
Concurrently, costs of “Clothing and Footwear” (5.2% of CPI) surged by 39.48% by March 2024, and the prices of “Communication” (4.5% of the CPI) increased by 28.89%. 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 CPI) increased by 9.5%, 36.2%, and 70.76%, respectively, by March 2024.
Interesting to note that monthly inflation between February 2024 and March 2024 stood at 1.72%.
Inflation rate by March 2024
Source: CAS, BLOMINVEST
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