Lebanon inflation hits 190% in February

Lebanon inflation hits 190% in February

BEIRUT: Inflation in Lebanon hit an annual rate of about 190 per cent in February as the International Monetary Fund called on the country’s government, parliament and central bank to close ranks and take decisive actions to stabilize the economy. Hyperinflation continued for the 32nd consecutive month, led by soaring communication, health, restaurant and hotel prices, as well as rising food, water and energy costs, the Central Administration of Statistics’ Consumer Price Index showed.

The CPI increased by about 26 per cent from January 2023. After hitting 155 per cent in 2021, inflation in the country surged to 171.2 per cent in 2022, the highest in about four decades as the country’s worst economic and financial crises in decades continued during a political deadlock that has blocked the formation of a new government and the enactment of reforms required to unlock billions of dollars in aid from the IMF and other international donors.

Communication costs increased nearly fivefold in February compared with the same month in 2022, while health costs increased more than four times. Clothing and footwear prices and the rates of restaurant and hotels leapt more than threefold. The prices of food and non-alcoholic beverages increased more than three times while transportation costs rose by a similar proportion.

Lebanon’s economy contracted