A parking sign in Beirut, Feb. 5, 2025. For several years now, parking prices have not been limited to four figures, due to the depreciation of the Lebanese pound. (Credit: Philippe Hage Boutros/L'Orient-Le Jour)
The consumer price index (CPI) began 2025 with a modest monthly increase of 1.10 percent, marking a 16.09 percent annual rise from January 2024 to January 2025, according to the latest figures published by Lebanon’s Central Administration of Statistics.
These results do not indicate any categorical changes compared to previous months, despite major events in January, including the election of Joseph Aoun as president, the appointment of Nawaf Salam as prime minister and the somewhat expected delay in Israel’s withdrawal from South Lebanon, initially scheduled for late January.
On a monthly basis, the CPI increase slowed for the first time since October, following rises of 2.02 percent, 2.30 percent and 2.38 percent over the three previous months. Annually, the increase was also lower than the 18.2 percent recorded at the end of December but higher than the 15.68 percent in October and 15.38 percent in November.
Such levels of price fluctuations in Lebanese pounds have not been seen since early 2020, during the first months of the economic crisis that erupted a few months earlier. At that time, the national currency had just begun its sharp depreciation, eventually losing more than 90 percent of its value before stabilizing in mid-2023 at its current level. However, with annual inflation exceeding 16 percent, it remains significantly high compared to acceptable levels in healthy economies.
Miscellaneous goods and services
Most CPI subcategories recorded modest changes on a monthly basis, with the notable exception of miscellaneous goods and services—covering items not included in other categories, such as financial services—which saw a sharp 9.18 percent increase. This rise was driven by higher insurance premiums in the medical sector, which increased by 15 to 25 percent between January and February, according to a source at a major Lebanese insurance company contacted by *L’Orient-Le Jour.*
In January, the Association of Insurance Companies in Lebanon (ACAL) announced this hike, reflecting an increase set in December by the private hospitals’ union. ACAL had anticipated an increase of 7.5 to 12 percent but acknowledged that each insurance company remained free to adjust its prices. Annually, the miscellaneous goods and services category recorded a rise significantly above the CPI average, at 26.74 percent.
Housing and transportation costs followed, with monthly increases of 1.91 percent and 1.77 percent, leading to annual rises of 17.21 percent and 10.25 percent, respectively.
The only decline was in clothing prices, which dropped by 2.10 percent—a logical post-holiday trend, as many retailers offer discounts. Annually, this category rose at a slower rate than the overall CPI.
On a regional level, the CPI increased in all parts of the country except in the Bekaa, where a marginal decrease of 0.07 percent was recorded. Among the regions with price hikes, Nabatieh led with a 2.62 percent rise, followed by Mount Lebanon (1.44 percent), North Lebanon (1.05 percent), Beirut (0.61 percent) and South Lebanon (0.15 percent).
