Lebanon’s Inflation Rate increased by 20.02% YOY in April 2026

Lebanon’s annual inflation rate rose by 20.02% year‑on‑year (YOY) in April 2026 (3.04% monthly increase from March 2026), rising from 17.26% YOY in March 2026, according to the Central Administration of Statistics (CAS). This was the highest annual inflation rise recorded since September 2024.

The increase was driven by the persistent of US and Israeli war on Iran that led to the closure of the Strait of Hormuz. The closure of this vital Strait, where around 20% of energy sources passes through, led to a spike in energy sources prices. As such, “Food and Non-Alcoholic Beverages”, “Alcoholic Beverages & Tobacco” and particularly “Housing Water, Electricity, Gas and Other Fuels” prices rose respectively year-on-year basis by 17.97%, 10.56%, and 26.3%.

Domestically, Lebanon faced additional pressures. The re‑escalation of the Hezbollah‑Israeli war interrupted production by destroying factories and wiping out farmland, driving prices up. The destruction of many homes drove demand for homes up leading to remarkable increases in rent compared to April 2025.

Below a breakdown of the April 2026 CPI:

Figure 1: Lebanon’s April 2026 Inflation Breakdown

Sources: CAS, BLOMINVEST

Although CPI increased in the last two months, however, they are still below 2025 figures due to increased dollarization of the economy and the stabilization of the exchange rate at around 89,500 LBP per USD. In case war in Lebanon does not end within the coming months, there are growing concerns that exchange rate stabilization could be disrupted due to the severe drop in foreign reserves at the Central Bank in the last couple of months. This will lead to sharp increases in inflation across the country.

Figure 2: Lebanon’s Inflation Trends (2021-2026)

Sources: CAS, BLOMINVEST