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 at high levels as it recorded a yearly 59.67% by April 2024, though less than the rates of 2021 – 2023 mainly due to the stability of the exchange rate at the parallel market especially since August 2023 upon the start of the reign of the acting governor of BDL Mr. Wassim Mansouri. 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 for the shipping companies whose ships pass through 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 political and economic challenges causing persistent high 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 the CPI) added a yearly 87.36% by April 2024. Similarly, “Owner-occupied” rental costs increased by 128.16% year-on-year (YOY) and the prices of “water, electricity, gas, and other fuels” followed a significant increase by 47.23% YOY.
Looking at the prices of “Food and non-alcoholic beverages” (20% of CPI), it surged by 33.5% 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 9.15% and 50.23% respectively by April 2024. Also, “Restaurant and Hotels” (2.8% of CPI) increased yearly by 30.19% by April 2024.
Concurrently, costs of “Clothing and Footwear” (5.2% of CPI) surged by 27.2% by April 2024, and the prices of “Communication” (4.5% of the CPI) increased by 29.94%. 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 9.22%, 22.71%, and 64.1%, respectively, by April 2024.
Interesting to note that monthly inflation between March 2024 and April 2024 stood at 1.74%.
Inflation Rate by April 2024
Source: CAS, BLOMINVEST
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