Lebanon’s CPI contracted just 1% y/y in June, narrowing from a 2.45% annual deflation in May, as prices rose during the fasting month of Ramadan, that ended on July 5, when private consumption expanded sharply, data from the statistics office CAS showed on July 21.
However, falling food, housing and transport prices, continue to weigh on the overall index with the IMF forecasting a CPI contraction of 0.7% in 2016.
In monthly terms, the CPI grew 0.7% in June, speeding up from a mere 0.1% m/m rise the preceding month.
Food and non-alcoholic beverage prices (20.6% of the basket) rose 0.3% m/m in June (down 2.4% m/m in May) on favourable seasonal factors and low import inflation. The annual deflation thus narrowed to 1% y/y from 3.2% in May.
Transport prices (13% of the basket) rose 1.2% m/m in June as the government upped fuel costs, cutting the annual decline to a still deep 6% from 6.3% y/y in May.
Housing charges (28.5% of the CPI index) rose 1.4% m/m in June but shrank 1.9% y/y compared with a 4.7% y/y contraction a month earlier, again on falling utilities charges (down 8.1% y/y). Rent costs rose 3.7% y/y in June, accelerating from 3% y/y in May.
Clothing and footwear charges rose 6% y/y despite falling 0.2% m/m in June. Strong local demand lifted the recreation prices by 2.5% y/y in June.
US President Donald Trump's December 6 announcement that his administration has decided to unilaterally recognise Jerusalem as Israel's capital was described as “against international law” by ... more
Iranian President Hassan Rouhani on November 21 declared the end of the so-called Islamic State militant and terrorist group following decisive battles in Iraq and Syria. Stating that he wished to ... more
Iran is taking control of oil exports from Iraqi Kurdistan's giant Kirkuk field with Baghdad authorising the move as a reward for the Iranians' help in quelling the Kurds' late September push for ... more