A supermarket aisle on the outskirts of Beirut. (Credit: Philippe Hage Boutros)
The consumer price index (CPI), which measures price increases in Lebanese lira in the country, rose again by more than 2 percent in November, two months after recording its only decline in two and a half years.
This 2.3 percent rise is slightly more pronounced than in October — during which the CPI increased by 2.02 percent — and brings the annual growth rate at the end of November to 15.38 percent, compared to 15.68 percent a month earlier, according to the latest figures published Monday by the Central Administration of Statistics (CAS), attached to the Presidency of the Cabinet.
The exchange rate was not affected by these variations, as it has been more or less stable for over a year now, at LL 89,500 to the dollar.
However, the context has changed considerably from one month to the next, as the Israeli bombardments that ravaged whole swathes of southern Lebanon, the Bekaa and Beirut's southern suburbs have stopped since the cease-fire between Israel and Hezbollah came into effect on Nov. 27.
Logically, economic activity has slightly picked up since then, bolstered by the November sales — the start of a festive season in which some expats ultimately took part. Additionally, the aid announced and distributed by Hezbollah to the Lebanese who are part of their community and whose homes were damaged or destroyed, has also contributed to this recovery.
Increase in all districts
Contacted earlier this month, several private sector representatives expressed their optimism for the future, given that the cease-fire is scheduled to last 60 days.
In this context, importers have raised some prices, as Mohammad Abou Haidar, Director General of the Economy Ministry, confirmed to L'Orient Today a few days ago. This suggests that the upward trend in the CPI will continue in December.
Regarding the CPI’s sub-indexes, the CAS revealed that the three largest monthly increases were observed in housing-related costs, food and nonalcoholic beverages prices and health expenses, which surged by 3.14 percent, 3.03 percent and 2.82 percent, respectively. Only transportation prices saw a month-on-month decrease (-0.31 percent).
Year-on-year, the biggest increase was recorded in the “miscellaneous goods and services” category, which includes all references not included in any of the other sub-indexes. The prices in this category shot up by 35.31 percent, followed by food and nonalcoholic beverages prices and health expenses, which rose by 23.19 percent and 23.02 percent, respectively.
The only year-on-year decreases were in furniture prices and transportation prices, which fell by 1.46 percent and 0.33 percent.
Lastly, the CPI rose month-on-month in all districts. Mount Lebanon registered the greatest price increase, followed by North Lebanon (+2.33 percent), South Lebanon (+1.40 percent), Beirut (+1.39 percent), the Bekaa (+0.98 percent) and Nabatieh (+0.89 percent).
This article was translated from L'Orient-Le Jour.
