Lebanon’s CPI deflation narrows to 4.1% y/y in October

By bne IntelliNews November 23, 2015

Falling food, housing, clothing and transport prices kept Lebanon’s CPI in negative territory during October, recoding a 4.1% y/y deflation despite narrowing mildly from a 4.7% annual contraction a month earlier, data from the statistics office CAS showed. The IMF forecasts Lebanon’s CPI inflation to brake to a mere 0.1% in 2015 from 1.9% last year.

In monthly terms, the CPI, however, rose 0.8% in October, reversing a 0.3% m/m deflation a month earlier on rising clothing and food costs.

Food and non-alcoholic beverage prices (20.6% of the basket) rose 0.8% m/m in October on unfavourable seasonal factors and strong local demand that lifted fresh produce prices. In annual terms, food prices contracted 0.8%, compared to a 0.9% annual decline in September.

Clothing and footwear prices climbed 10.4% m/m in October on lack of seasonal discounts and strong demand ahead of the education year. In annual terms, clothing and footwear costs rose just 1.4% in October. Alcoholic beverage and tobacco prices climbed 5% y/y during the month on sustained strong private consumption.

Housing charges ticked up a marginal 0.3% m/m but fell 7% y/y on plummeting utilities charges (down 19.6% y/y). Rent costs grew a mild 1.8% y/y during the month due to low prior-year base effect.

Transport prices fell 0.8% m/m and 12.7% y/y as the government cut fuel costs amid lower energy prices.

Related Articles

Trump warns US pullout from "horrible" Iran nuclear deal might still be ahead

US President Donald Trump on October 16 warned that the termination of the Iran nuclear deal is still a clear possibility even though he ... more

Pentagon chief suggests staying in Iran nuclear deal is in US interests

US Defence Secretary Jim Mattis on October 3 told the Senate Armed Services Committee that it currently appears to be in the strategic interest of Washington to remain in the Iran nuclear deal. ... more

Iran will in six years accept stricter nuclear inspections if US behaves, says foreign minister

Iran’s foreign minister has said the country is willing to formally accept a tougher nuclear inspection regime in six years. However, Mohammad Javad Zarif continued to rule out any renegotiation of ... more