Lebanon: Food Prices Soar, Increasing By 100% in 2 Weeks

Lebanon: Food Prices Soar, Increasing By 100% in 2 Weeks
TT

Lebanon: Food Prices Soar, Increasing By 100% in 2 Weeks

Lebanon: Food Prices Soar, Increasing By 100% in 2 Weeks

Food prices in Lebanon are rising on a daily basis as a result of the constant change of the dollar exchange rate.

Prices of foodstuffs have risen by 72 percent since May, said the head of the Consumer Protection Association, Zuhair Berro, but added that the last two weeks have registered an increase by 100 percent.

In remarks to Asharq Al-Awsat, he said: “The rise in prices was evident despite the presence of a food basket subsidized by the Ministry of Economy,” noting that low prices were observed only in Egyptian rice and sugar.

A number of owners of small grocery stores, who were interviewed by Asharq Al-Awsat, confirmed that the subsidized products were not provided to merchants or were available only in very small quantities.

The reason for the rise in prices is due to two main factors, said the head of the food importers union, Hani Bohsali.

“The first is the presence of goods on the market that were imported before the subsidy decision, and therefore are sold on the basis of the daily exchange rate and change continuously. The second is linked to the quantities of products imported on the basis of subsidies that are not sufficient for the market’s need,” he explained.

Bohsali noted that many importers “did not submit import orders because of the very difficult conditions, including the need to pay the price of the goods to the supplier company, and then placing a guarantee in the bank with the value of these goods in Lebanese pounds.”

He said, however, that basic foodstuffs would “remain available on the market”, ruling out the stopping of imports “as long as the dollar is accessible.”

“The quantity of imports, especially for non-essential foodstuffs, has decreased significantly in the recent period. This is due to two reasons: the dollar shortage and the decline in purchasing power, as many traders stopped importing non-essential food items because their prices has become very high with the rise of the dollar,” Bohsali underlined.



Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
TT

Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold prices rose over 1% to hit a two-week peak on Friday, heading for the best weekly performance in more than a year, buoyed by safe-haven demand as Russia-Ukraine tensions intensified.

Spot gold jumped 1.3% to $2,703.05 per ounce as of 1245 GMT, hitting its highest since Nov. 8. US gold futures gained 1.1% to $2,705.30.

Bullion rose despite the US dollar hitting a 13-month high, while bitcoin hit a record peak and neared the $100,000 level.

"With both gold and USD (US dollar) rising, it seems that safe-haven demand is lifting both assets," said UBS analyst Giovanni Staunovo.

Ukraine's military said its drones struck four oil refineries, radar stations and other military installations in Russia, Reuters reported.

Gold has gained over 5% so far this week, its best weekly performance since October 2023. Prices have gained around $173 after slipping to a two-month low last week.

"We understand that the price setback has been used by 'Western world' investors under-allocated to gold to build exposure considering the geopolitical risks that are still around. So we continue to expect gold to rise further over the coming months," Staunovo said.

Bullion tends to shine during geopolitical tensions, economic risks, and a low interest rate environment. Markets are pricing in a 59.4% chance of a 25-basis-points cut at the Fed's December meeting, per the CME Fedwatch tool.

However, "if Fed skips or pauses its rate cut in December, that will be negative for gold prices and we could see some pullback," said Soni Kumari, a commodity strategist at ANZ.

The Chicago Federal Reserve president reiterated his support for further US interest rate cuts on Thursday.

On Friday, spot silver rose 1.8% to $31.34 per ounce, platinum eased 0.1% to $960.13 and palladium fell 0.6% to $1,023.55. All three metals were on track for a weekly rise.