Prices in Lebanon Rise by Average of 33% Monthly, 264% Annually

Lebanese flag flutters at the site of Beirut port blast, Lebanon, July 29, 2021. Picture taken July 29, 2021. REUTERS/Mohamed Azakir
Lebanese flag flutters at the site of Beirut port blast, Lebanon, July 29, 2021. Picture taken July 29, 2021. REUTERS/Mohamed Azakir
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Prices in Lebanon Rise by Average of 33% Monthly, 264% Annually

Lebanese flag flutters at the site of Beirut port blast, Lebanon, July 29, 2021. Picture taken July 29, 2021. REUTERS/Mohamed Azakir
Lebanese flag flutters at the site of Beirut port blast, Lebanon, July 29, 2021. Picture taken July 29, 2021. REUTERS/Mohamed Azakir

Lebanese consumers are anxiously anticipating the continued rise of the inflation index, as the customs dollar exchange rate has been re-raised from LBP 45,000 to LBP 60,000, and the current exchange rate of the “Sayrafa” platform hovers around LBP 87,000 per dollar.

The benchmark for consumer prices is now approaching the 4,000% mark, having already reached a significant figure of 3,710% at the close of the first quarter of the year.

According to the latest figures from the Central Statistics Administration, unprecedented complications have emerged from the all-encompassing increases in consumer prices.

The figures reveal a rocketing inflation index of around 264% at the end of the first quarter of the year on an annual basis. This is further exacerbated by a monthly surge that reached an astounding 33.3% in March alone.

Such figures confirm that Lebanon retains the top spot for food price increases. In the coming months, the gap is expected to widen with other countries suffering from similar cash and financial crises, including Mozambique, Venezuela, Iran, and others.

The inflation index has reached an unprecedented level, with the telecommunications sector and overall cost of internet seeing a surge of 621% compared to the end of the first quarter of last year.

The health sector, including medicine and medical services, increased by 374 %. Other categories such as food and beverages, clothing and footwear, home furnishings and maintenance, and restaurants also experienced hikes exceeding 350 %. Transportation costs have risen by over 300% as well.

Trade sources indicate that these facts point to further price increases in the upcoming months, as the pricing in dollars phenomenon expands.

The current black-market exchange rate is around LBP 97,000 per dollar.

It is worth noting that the actual pricing of most food and essential goods incorporates a precautionary margin ranging from 10% to 15% to guard against currency fluctuations.



Saudi Business and Job Growth Hit 14-Year High

Riyadh, Saudi Arabia (AFP)
Riyadh, Saudi Arabia (AFP)
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Saudi Business and Job Growth Hit 14-Year High

Riyadh, Saudi Arabia (AFP)
Riyadh, Saudi Arabia (AFP)

Business conditions in Saudi Arabia’s non-oil private sector improved notably in June, driven by a marked rise in customer demand and expanded production, according to the latest Riyad Bank Purchasing Managers’ Index (PMI) data.

New business volumes surged, fueling the fastest pace of employment growth since May 2011. This strong demand for workers pushed wage costs to record highs, adding pressure on overall expenses and contributing to a fresh increase in output prices.

The headline PMI climbed to 57.2 in June from 55.8 in May - its highest level in three months and slightly above the long-term average of 56.9. The reading signaled a robust improvement in the health of the non-oil private sector economy.

Companies reported another rise in new orders last month, with growth accelerating following a recent low in April. Many firms cited gaining new clients, alongside improved marketing efforts and stronger demand conditions. Domestic sales were the main driver of the increase, while export sales edged up slightly.

Purchasing Activity Expands

Production continued to expand through the end of Q2, although growth slowed to a 10-month low. Purchasing activity picked up sharply as companies sought to secure additional inputs to meet rising demand, with the pace of purchase growth reaching its fastest in two years.

Employment growth accelerated as businesses rapidly expanded their workforce to keep pace with incoming orders, pushing hiring to the highest level since mid-2011. This strong recruitment trend, which began early in 2025, was largely driven by a rising need for skilled workers, prompting companies to increase salary offers. Consequently, overall wage costs rose at the fastest rate since the PMI survey started in 2009.

Facing mounting cost pressures from higher raw material prices, firms raised their selling prices sharply in June , the biggest increase since late 2023, reversing declines recorded in two of the previous three months. This price hike largely reflected the passing of higher operating costs onto customers, although some companies opted for competitive pricing strategies by cutting prices.

Resilient Economic Outlook

Looking ahead, non-oil private sector firms remained confident about business activity over the next 12 months. Optimism hit a two-year high, supported by resilient domestic economic conditions, strong demand, and improved sales. Supply-side conditions also showed positive momentum, with another strong improvement in supplier performance.

Dr. Naif Alghaith, Chief Economist at Riyad Bank, said: “Future expectations among non-oil companies remain very positive. Business confidence reached its highest level in two years, underpinned by strong order inflows and improving local economic conditions.”

He added: “However, cost pressures became more pronounced in June, with wage growth hitting record levels as companies compete to retain talent. Purchasing prices also rose at the fastest pace since February, partly driven by increased demand and geopolitical risks. Despite these challenges, companies broadly raised selling prices to recover from May’s declines, reflecting an improved ability to pass higher costs onto customers.”