Lebanon’s annual inflation rate dropped to 12.99% in April 2025, down from 14.19% in March 2025 to record its lowest level since April 2020, according to the Central Administration of Statistics (CAS). This decline in inflation especially over the past two years is largely attributed to increased dollarization by businesses and greater exchange rate stability, particularly since August 2023. However, ongoing political and military tensions in the Middle East, especially their impact on Red Sea shipping routes, continue to pose risks to supply chains, potentially raising shipping costs and driving inflation back up.
Source: CAS, BLOMINVEST
Notably, Education which accounts for 6.6% of the Consumer Price Index (CPI) increased by 30.74% Year-Over-Year (YOY). Owner Occupied (13.6% of CPI) rose by 26.39% YOY, while Health (7.7% of CPI) saw a 21.68% YOY increase during the same period.
The “New Rent” category rose by 25.92% YOY, despite the ceasefire agreement signed on November 27, 2024. Many displaced individuals remain hesitant to return to their homes, as Israel continues to violate the ceasefire.
On a monthly basis, Consumer Price Index (Inflation) increased between March 2025 and April 2025 by 0.67%.
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