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.
Related Articles
Egypt brings new gas well online with 10mn cubic feet/day output
Egypt’s Ministry of Petroleum and Mineral Resources is finalising procedures to bring a new natural gas well, North El-Basant-1, into production with an expected output of around 10mn cubic feet ... more
Tunisia kicks off stalled expansion of solar projects with 1.3GW capacity push
Tunisia is finally accelerating the deployment of its large-scale photovoltaic (PV) sector after years of slow progress, with construction now underway across multiple major projects, PV-Magazine ... more
Shell and Petronas seek 20% gas price increase for Egypt’s West Delta marine phase
UK energy major Shell (LON:SHEL) and Malaysia's national oil and gas company Petronas have asked the Egyptian Natural Gas Holding Company (EGAS) to raise the gas price for the upcoming Phase 12 ... more