Lebanon’s Inflation Increases by 15.68% Annually in October 2024

Lebanon’s annual inflation rate dropped to 15.68% in October 2024, down from 32.92% in September 2024, marking its lowest level since February 2020, according to the Central Administration of Statistics (CAS). On a monthly basis, the Consumer Price Index (CPI) rose by 2.02% in October 2024.

The drop in inflation is partly due to increased dollarization in the economy and the stabilization of the exchange rate at around 89,500 LBP per USD. However, ongoing political and military tensions in the Middle East and disruptions in Red Sea shipping could raise inflation by increasing shipping costs. The escalating Lebanon-Israel war risks additional import disruptions of basic needs, driving prices higher.

This is the first annual comparison since the war began in October 2023. It also reflects the impact of the intensification of the conflict since late September 2024.

Since some Lebanese areas were heavily damaged by the war, CAS faced significant challenges in collecting the prices of goods and services. Therefore, it sought some alternative methods, such as replacement and reliance on electronically available data. CAS still succeeded in issuing the CPI in a scientifically sound manner.

While the CPI has significantly dropped from its triple-digit levels since 2020, current figures are still high, indicating that prices are still increasing in dollars.

Source: CAS, BLOMINVEST

Inflationary Pressures Across Categories:

• Food and Non-Alcoholic Beverages: Prices rose by 22.77% annually due ongoing supply chain disruptions and as the war severely damaged the agriculture sector, limiting agricultural products supply.
• Housing Water, Electricity, Gas, and Other Fuels: This category saw a 16.86% increase. Mass displacement led to a 37% rise in new rents and a 33.77% rise in owner-occupied housing costs. However, Water, Electricity, Gas, and Other Fuels was the only component to see an annual drop of 4.56% in October.
• Education: Education costs rose by 0.93% yearly in October after a sharp increase of around 587% in previous months.

Here is a breakdown of the CPI on an annual and monthly basis:

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