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Lebanon Hikes Price of Bread by 50%

Lebanon Hikes Price of Bread by 50%

Tuesday, 12 January, 2021 - 08:00
Workers pack bread at a bakery in Beirut, Lebanon June 30, 2020. (Reuters)

Lebanon’s Economy Ministry officially set on Monday the new 900-gram bread loaf price at 2,250 Lebanese pounds due to the rise of the global wheat prices.

The decision was taken after the Ministry said that the Iraqi flour donation, which has been used at bakeries to produce bread since November, had run out.

“Consequently, and due to the rise of the global wheat prices, and based on the manufacturing, distribution, and sales cost, as well as in view of the high exchange rate of the US dollar against the pound, caretaker Minister of Economy, Raoul Nehme, issued a decision to set new bread prices,” the Ministry said.

A large size parcel with a minimum weight of 900 grams will now be sold at LL2,250. Meanwhile, a medium size parcel with a minimum weight of 400 grams will be sold at a maximum price of LL1,500.

Nehme said the price would be reduced depending on the US dollar exchange rate or the global wheat price.

In June, the government raised the price of a 900-gram loaf of partially subsidized bread to 2,000 pounds from its pre-October 2019 crisis price of 1,500 pounds in the first such change in eight years.

The pound, which is officially pegged at 1,500 to the dollar, has lost over 80% of its value since October 2019 and is now trading at more than 8,000 to the dollar on the black market after sharp falls last week.

Since October 2019, Lebanon has been in a financial crisis that has seen businesses close and prices and unemployment soar.

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