The annual inflation rate in Lebanon, according to the government's Central Bureau of Statistics, reached a record level, as food prices rose by up to 400 percent in December, highlighting the significant impact on consumers and companies as a result of the worst financial crisis in the country since decades.
The annual inflation rate was 84.9 percent in 2020, compared to only 2.9 percent a year before, as the current inflation rate is the highest since 2013, as consumer prices jumped by 145.8 percent in December compared to the same month in 2019, according to Bloomberg.
Food and non-alcoholic beverages rose by 402.3 percent, while alcoholic beverages and tobacco rose by 392.5 percent, clothing and shoes increased 559.8 percent and catering and hotel services increased by 609 percent, and the prices of furniture, household equipment and routine maintenance reached record levels after their rise by 655.1 percent.
The Lebanese currency collapsed after an escalation in the political and financial crises in 2019, with foreign currency inflows and dwindling central bank reserves. The official price of the Lebanese currency is 1,507.5 pounds per dollar only for fuel and pharmaceutical imports, while the Lebanese currency has reached 8,800 per dollar on the black market. Aid talks with the International Monetary Fund stalled after disagreements with commercial lenders and the central bank, the country's largest debt holders.
Source (Al-Arabiya.net website, Edited)
