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.
