Lebanon’s annual inflation rate decreased to 15.64% in February 2025, from 16.09% in January 2025 according to the Central Administration of Statistics (CAS). The average decrease in inflation in last year-and-a-half resulted from the increase of dollarization rates by businesses and to the stability of the exchange rate especially since August 2023. Moreover, the continued escalating political and military tensions in the Middle East and its effect on Red Sea sea-shipping traffic still threatens to disrupt supply chains, which could increase shipping costs, and consequently lead to an increase in inflation.
Source: CAS, BLOMINVEST
In details, it is worthwhile to note that Education (6.6% of CPI) increased by 30.78% YOY, Owner Occupied (13.6% of CPI) soared by 26.94% YOY, and Health (7.7% of CPI) rose by 21.32% YOY during the same period.
The “New Rent” increased yearly by 27.55% despite that the cease-fire agreement started in November 27th, 2024 as some displaced people who lost their houses are hesitant to return to their villages as Israel is still breaching the cease-fire agreement in addition to the fact that most of them have paid the rent for 6 months or a year in advance. Moreover, “Health” increased by 21.32% annually due to the war as tens of thousands was injured and needed treatment.
On a monthly basis, Consumer Price Index (Inflation) increased between January 2025 and February 2025 by 0.66%.
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