Lebanon’s annual inflation rate increased to 15.00% in June 2025, from 14.44% in May 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. However, the Iran-Israel war disrupted regional stability and significantly increased transportation costs both by air and on ground. This surge in logistics and fuel expenses directly impacted the prices of imported goods and essential commodities, amplifying overall price pressures in Lebanon’s already fragile economy.
Source: CAS, BLOMINVEST
In details, it is worthwhile to note that Education (6.6% of CPI) increased by 30.60% YOY, Owner Occupied (13.6% of CPI) soared by 29.93% YOY, and Health (7.7% of CPI) rose by 21.70% YOY during the same period.
The “New Rent” increased yearly by 30.08% 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 a year in advance. Moreover, “Health” increased by 21.70% annually due to the war as tens of thousands was injured and needs treatment for a long period.
On a monthly basis, Consumer Price Index (Inflation) increased between May 2025 and June 2025 by 0.76%.
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