Lebanon’s deflation narrows to 1% y/y in June on Ramadan factor

By bne IntelliNews July 21, 2016

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.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Xlinks warns cost of Morocco-UK Power Project could rise some 25% to reach $30bn

UK renewable energy producer Xlinks, noting significant upward pressure on the cost of all energy projects, has warned that construction of the Morocco-UK Power Project could reach $27bn to $30bn, up ... more

Morocco in talks with investors to build EV battery gigafactories, says minister

The Moroccan government is in extensive talks to attract more electric vehicle (EV) battery manufacturers to support its growing automotive sector and meet soaring demand, industry and trade minister ... more

UAE’s Masdar, Uzbekhydroenergo partner up to evaluate potential of national hydro power storage

United Arab Emirates renewable energy company Masdar has partnered with Uzbekhydroenergo to evaluate the potential of national hydroelectric power storage projects. Masdar and Uzbekhydroenergo, a ... more

Follow Us On

Most Read

  1. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  2. Don't mention the "D" word - Ukraine
    6 days ago
  3. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    9 days ago
  4. The 'wet-bulb' set to kill hundreds of thousands of people if temperatures and humidity levels continue to rise
    4 days ago
  5. The models are wrong, climate change is accelerating faster than predicted
    2 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    27 days ago
  2. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  3. BRICS announce a blockchain-based payment system to create a common currency
    29 days ago
  4. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    1 month ago
  5. Saudi Arabia to scale back plans for Neom city
    16 days ago

Reports

Dismiss