Published on: 22/02/2023
Lebanon’s inflation more than doubled in January, as rising living costs continued to impact consumers and businesses.
The consumer price index (CPI) for the month posted an annual increase of 123.5%, driven largely by the high costs of communication, education and healthcare, according to the latest data released by Lebanon’s Central Administration Statistics.
Households and businesses in Lebanon saw communication costs jump by 331%, while education and healthcare posted increases of 191% and 176%, respectively.
Bills for water, electricity, gas and other fuels climbed by 163%, while the prices of clothing and footwear went up by 161%.
Consumers and businesses also had to fork out more for transportation, which went up by 135%.
Significant increases were likewise recorded in the food and non-alcoholic beverages category, up by 138%, as well as in restaurants and hotels, up by 174%.
On a monthly basis, Lebanon’s CPI went up by 8.43%.
The International Monetary Fund (IMF, in its September 2022 report, said the Lebanese economy remains “severely depressed”. Besides soaring inflation, the country has been facing declines in employment levels, gross domestic product (GDP), foreign exchange reserves and revenues.
The country’s gross domestic product (GDP) has contracted by more than 40% since 2018 and the parallel exchange rate has reached LBP 38,000 per US dollar.
“Amidst collapsing revenues and drastically suppressed spending, public sector institutions are failing, and basis services to the population have been drastically cut. Unemployment and poverty are at historically high rates,” the IMF said.
Source: ZAWYA