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 peaked in April 2023 and registered a historical all-time high level of 268.78%. Unfortunately, The inflation headline was historically the highest one registered in Lebanon as beginning March 1, 2023 Lebanon’s supermarket started to list their prices in US dollars, mainly due to the rapid deterioration of the domestic currency against the dollar. In addition, customs dollar rate has been adjusted from 15,000 LBP/USD to 60,000 LBP/USD, by April 18, 2023, which adds more pressure on prices.
In more details, the cost of “Housing and utilities”, inclusive of water, electricity, gas and other fuels (grasping 28.4% of the CPI) added a yearly 151.02% by April 2023. Also, “Owner-occupied” rental costs increased by 130.29% year-on-year (YOY) and the prices of “water, electricity, gas, and other fuels” followed a significant increase by 203.74% YOY.
Looking at the prices of “Food and non-alcoholic beverages” (20% of CPI), it surged by 349.98% 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 308.07% and 327.39% respectively by April 2023. Also, “Restaurant and Hotels” (2.8% of CPI) increased yearly by 377.97% by April 2023.
In the same token, costs of “Clothing and Footwear” (5.2% of CPI) surged by 328.76% by April 2023, and the prices of “Communication” (4.5% of the CPI) increased by 609.58% as mobile phone bills are currently charged in dollars at Sayrafa rate, which stood at LBP 86,500 per USD by end of April 2023.
Finally, 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 341.21%, 498.23%, and 216.36%, respectively, by April 2023.
Inflation rate by April 2023
Source: CAS, BLOMINVEST
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