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 177.25% by January 2024. Meanwhile, escalating political tensions in the 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 caused 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, the cost of “Housing and utilities”, inclusive of water, electricity, gas and other fuels (grasping 28.4% of the CPI) added a yearly 208.54% by January 2024. Similarly, “Owner-occupied” rental costs increased by 364.99% year-on-year (YOY) and the prices of “water, electricity, gas, and other fuels” followed a significant increase by 87.97% YOY.
Looking at the prices of “Food and non-alcoholic beverages” (20% of CPI), it surged by 180.96% 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 103.65% and 146.54% respectively by January 2024. Also, “Restaurant and Hotels” (2.8% of CPI) increased yearly by 154.11% by January 2024.
Concurrently, costs of “Clothing and Footwear” (5.2% of CPI) surged by 133.79% by January 2024, and the prices of “Communication” (4.5% of the CPI) increased by 115.92%. 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 122.78%, 195.37%, and 126.59%, respectively, by January 2024. Interesting to note that monthly inflation between December 2023 and January 2024 stood at 2.87%.
Inflation rate by January 2024
Source: CAS, BLOMINVEST
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