What’s the truth about Lebanon’s soaring inflation rate?

What’s the truth about Lebanon’s soaring inflation rate?

Lebanon's monthly inflation rate soared to a record high of 136.8 percent in October, according to official figures but the rate could be as high as 365 percent, says one of the world's top experts on measuring hyperinflation.

Latest figures from the Central Administration of Statistics (CAS) indicates the lower rate but Steve H Hanke, a professor of Applied Economics at Johns Hopkins University in Baltimore, insists Lebanon has now overtaken Zimbabwe to take second place in the ranking of the world's highest inflation rates.

Inflation rate in Lebanon exceeds 131 percent year-on-year by the end of September

Hanke (pictured below) told Arabian Business "In their October report, the Central Administration of Statistics reports Lebanon's Inflation to be 136.8 percent. This is wrong. While Lebanon's government produces corrupted facts, I utilise purchasing power parity (PPP) principles and high-frequency data to accurately measure inflation."

He added: "It's rather shocking to watch Lebanon's politicians fiddle, while Beirut burns. Lebanon's wheels are flying off. The pound has soared to 8,500 LBP/US dollar in the free market. Consequently, inflation, which I measure each day, is surging. To save Lebanon, a currency board must be installed immediately."

A currency board is a monetary institution - or set of laws governing