Lebanon’s deflation holds at 2.4% y/y in May

By bne IntelliNews June 21, 2016

Lebanon’s CPI contracted 2.45% y/y in May, virtually the same as a month earlier, amid falling food, housing and transport prices, thus sustaining its downward pattern seen in 2015, data from the statistics office CAS showed. Lebanon’s CPI will remain in negative territory also this year with the IMF forecasting a contraction of 0.7%.

In monthly terms, the CPI ticked up a marginal 0.1%, braking from a 0.8% m/m increase in April on higher transport and housing charges.

The CPI index might swing into mild positive growth in June and July given the Ramadan factor which usually boost prices of food, clothing and entertainment as local demand soars.

Food and non-alcoholic beverage prices (20.6% of the basket) fell 2.4% m/m in May on favourable seasonal factors and low import inflation. The annual deflation thus widened to 3.2% from 2.4% in April.

Transport prices (13% of the basket) fell 6.3% y/y in May despite rising 1.2% m/m as the government upped fuel costs.

Housing charges (28.5% of the CPI index) rose 1.1% m/m in May but shrank 4.7% y/y, on falling utilities charges (down 14.1% y/y). Rent costs rose 3% y/y during the month.

Related Articles

Erdogan: Turkey may strike Kurdish militants in Iraq’s Quandil Mountains “at any moment one evening”

Turkey will strike Kurdish militant camps in the mountains of northern Iraq if Baghdad does not itself clear the area of militants, President Recept Tayyip Erdogan said on June 7. On June 6, ... more

UAE investor to develop $500mn agri-food group in Romania

The Al Dahra Group of the United Arab Emirates (UAE) wants to purchase nearly 60,000 hectares of agricultural land along the Danube River, develop a logistics company including water and road ... more

UAE to buy major stakes in Kazakh special economic zones

The United Arab Emirates’ (UAE’s) global port operator Dubai Ports World on March 24 signed two framework agreements to acquire stakes in Kazakhstan’s two Special Economic ... more

Dismiss