Customers at the opening of the City Center shopping mall in Hazmieh, March 11, 2026. (Credit: Philippe Hage Boutros/L'Orient-Le Jour)
Despite a brief respite in June and July, when the consumer price index posted two slight monthly declines, it rose again in August, driven by rising energy, housing and transportation costs amid persistent inflation fueled by the regional war between Iran and the United States and its impact on hydrocarbon markets.
The CPI rose 1.4% month over month and 16.66% year over year, pushing the average inflation rate for the first eight months to 16.14%, compared with 14.8% over the 12 months of 2025.
Housing-related energy prices (water, electricity and gas) increased 7.15% month over month and 32.06% year over year, with the worst likely still to come unless the trend reverses.
In August, gasoline prices rose 4%, compared with a 7.3% increase for diesel used by private generators and a 0.1% drop for gas canisters. Between the end of August and the Energy Ministry's most recent price update last Friday, prices for these three fuels have already increased by 10.5% ($31.32), 4.54% ($13.60) and 14%, respectively.
The rise in energy and housing prices naturally drove overall housing costs higher. Housing posted the second-largest monthly increase, at 3.08%, and rose 17.879% year over year. Transportation posted the third-largest monthly gain, at 2.62%, and rose 31.72% year over year.
There were two notable monthly decreases: clothing and shoes, down 2.75% (up 1.15% year over year), and telecommunications, down 0.3% (down 0.78% year over year).
Regionally, the CPI increased 0.5% in Beirut (up 11.98% year over year), 1.75% in Mount Lebanon (up 16.97%), 1.09% in North Lebanon (up 16.93%), 1.38% in the Bekaa (up 20.51%), 0.79% in South Lebanon (up 15.10%) and 2.12% in Nabatieh (up 18.52%).
