Lebanon’s annual inflation rate decreased to 14.17% in August 2025, from 14.27% annually in July 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, in august, tensions over the government’s U.S.-backed disarmament plan targeting Hezbollah’s weapons, along with protests and ongoing conflicts in the South, added to uncertainty. At the same time, disputes over private generator pricing and delays in banking reforms kept operating costs elevated, limiting the slowdown in inflation and contributing to the modest monthly high in the CPI.
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 27.77% YOY, and Food and Non-alcoholic Beverages (20% of CPI) rose by 23.55% YOY during the same period.
The high “New Rent” increased yearly by 28.83% as uncertainty persisted, with Israel repeatedly breaching the November 27 ceasefire agreement. Many households rushed to secure housing, and in response, some tenants prepaid leases for several years, driving overall rent prices higher.
On a monthly basis, Consumer Price Index (Inflation) increased between July 2025 and August 2025 by 0.56%.
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