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.



Gold Gains over 1% as Dollar, Yields Ease; Spotlight on Trade

A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo
A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo
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Gold Gains over 1% as Dollar, Yields Ease; Spotlight on Trade

A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo
A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo

Gold prices gained over 1% on Monday as the dollar and US bond yields weakened amid uncertainty over trade talks ahead of a US deadline of August 1 for countries to strike deals or face more tariffs.

Spot gold was up 1.2% at $3,390.79 per ounce at 9:52 ET (1352 GMT). US gold futures were up 1.3% to $3,402.40.

The US dollar index was down 0.4%, making dollar-denominated gold more affordable for buyers using other currencies, while benchmark 10-year U.S. Treasury yields hit a more than one-week low, Reuters reported.

"With the August 1st deadline looming, it brings a level of uncertainty to the market and that certainly is supportive," said David Meger, director of metals trading at High Ridge Futures.

The European Union is exploring a broader set of possible counter-measures against the US as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats.

On the interest rate front, traders are pricing about a 63% chance of a rate cut in September, according to the CME FedWatch Tool.

U.S. Treasury Secretary Scott Bessent said the entire Federal Reserve needed to be examined as an institution and whether it had been successful.

Talk of earlier than expected U.S. rate cuts is building, with speculation around a possible replacement of Fed Chair Jerome Powell and reshaping of the Fed adding to market jitters, Meger said.

Gold is considered a hedge against uncertainty and tends to perform well in a low interest rate environment.

Data showed that the world's leading gold consumer, China, brought in 63 metric tons of the precious metal last month, the lowest amount since January. Its imports of platinum in June fell 6.1% from the prior month.

Spot silver gained 1.8% to $38.86 per ounce, platinum rose 2.2% to $1,453.17 and palladium was 3.5% higher at $1,284.46.