Consumer prices fall below May levels compared to last year

BEIRUT — The consumer price index (CPI) rose by 1.32 percent in July, resulting in a slight slowdown in its year-on-year growth, according to the latest update published Thursday by the Central Administration of Statistics.

Despite this, growth remains significant at 14.24 percent, but falls below the level recorded in May (14.44 percent.)

Although the Lebanese lira has been stable for nearly two years after losing about 90 percent of its value between 2019 and 2023, price increases are driven by several factors including stricter enforcement of customs duties that affect import prices, arbitrary decisions by importers to raise prices, fees on bank transfers, and the prevalence of cash in an economy that has been in crisis since 2019.

Prices are also somewhat pushed up by the tourism and leisure sector, which benefited from a significant influx of diaspora members and tourists who were not deterred by uncertainties about Lebanon’s or the region’s security situation.

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In detail, the largest monthly increase was recorded in clothing and footwear prices, which jumped by 6.08 percent (+11.02 percent year-on-year.)

Except for restaurant and hotel prices, which inched up by 1.11 percent in July (+14.88 percent year-on-year,) all other sub-indices showed increases of less than 1 percent, apart from education prices which remained stable while awaiting the update of tuition fees that began in August (+30.74 percent year-on-year,) as well as three sub-indices that posted slight declines: transportation (-0.80 percent month-on-month, -1.39 percent year-on-year,) alcoholic beverages and tobacco (-0.34 percent, +12.40 percent,) and telecommunications (-0.02 percent, -2.70 percent.) The monthly drop in telecom prices is likely due to the adjustment of recent data service rates by a Lebanese mobile operator.

The CPI ended the month of July up in all Lebanese regions except Bekaa (-0.27 percent.)

The largest monthly increase was recorded in South Lebanon (+1.37 percent,) followed by North Lebanon (+1.10 percent,) Beirut (+0.97 percent,) Nabatieh (+0.75 percent) and Mount Lebanon (+0.47 percent)