Lebanon: Govt Raises Bread Price for Seventh Time in One Year

Lebanon: Govt Raises Bread Price for Seventh Time in One Year

For the seventh time in a year, Lebanon's economy ministry announced on Saturday new prices for bread, slowly removing subsidies as the country sinks deeper into a dire economic and political crisis.

The ministry said raising the price was necessary as the national currency continues to slide against the dollar, making imports of basic supplies including fuel and wheat more expensive. The currency, pegged to the dollar for nearly 30 years at 1,500 to the dollar, has lost over 90 percent of its value. It is now trading at nearly 20,000 Lebanese pounds to the dollar, according to The Associated Press.

This is the second price hike this month. The ministry raised the price of a bag of flatbread, a staple in Lebanon, by 6 percent "” making it now sell at 4,000 Lebanese Pounds (or $2.7 at the official rate). The decision also included a new reduction in the size of the bag of bread "” this time by 5 percent.

Lebanon is in the throes of an economic crisis that is bringing regular life to a near halt. Businesses are shutting down, pharmacies have gone on strikes because they can't secure imported medicines. Fuel shortages have forced hospitals and the country's