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Consumer prices up by 3 percent year-to-date in Lebanon

22 September 2010

BEIRUT: According to figures released by the Consultation and Research Institute (CRI), Lebanon witnessed an increase in its Consumer Price Index (CPI) of 2.6 percent in the first eight months of this year.

The report was published by Bank Audi’s Lebanon Weekly Monitor. This increase comes in spite of the deflation witnessed in February, March, July and August 2010, as the CPI dropped month-on-month by 0.26 percent, 0.42 percent, 0.43 percent and 0.15 percent during the said four months.

On a yearly basis, the CPI rose by 3.2 percent in August 2010 compared to the same month of the previous year.

The increase in the CPI over the first eight months of 2010 was attributed to a rise of 8.04 percent in prices of miscellaneous goods and services, 6.22 percent in prices of food and beverages, 2.57 percent in prices of housing, 0.26 percent in prices of transportation and telecommunications, 0.16 percent in prices of durable consumer goods and 0.11 percent in prices of recreation.

Miscellaneous goods and services, the sub-index which gauges 4.02 percent of the overall CPI weight, increased as prices of jewelry rose by 17.43 percent and prices of personal care increased by 5.93 percent.

Food and beverages, which encompass 35.40 percent of the overall weight, were the second component to push the inflation rate up on the back of a 6.65 percent rise in prices of food, a 1.30 percent growth in prices of tobacco products, and increases of 0.93 percent and 0.22 percent in prices of nonalcoholic and alcoholic beverages, respectively.

As to housing, which captures 6.49 percent of the overall measure, its price went up due to a growth of 3.94 percent in prices of household energy which was not offset by the drop of 0.45 percent in household maintenance fees.

The prices of transportations and telecommunications, a fourth component weighing 14.39 percent of the CPI, were mainly driven by the 0.28 percent rise in prices of transport.

The prices of durable consumer goods, which weigh 8.18 percent of the total, increased slightly as prices of linens rose by 6.12 percent, while those of cleaning products and services grew by 1.81 percent.

As to recreation, which captures 2.70 percent of the overall measure, their prices went up due to a growth of 0.59 percent in prices of reading materials and photography.

With respect to education, which weighs 12.45 percent of the total, it remained unchanged as the prices of educational books and supplies, school transport and tuition fees remained unchanged.

Apparel and healthcare were the sole components to post price decreases in the first eight months of 2010.

Prices of apparel went down by 6.24 percent mainly because of a drop of 13.48 percent in prices of clothing and sewing materials which was not counterbalanced by the 14.59 percent rise in the prices of footwear (as the weights of footwear and clothing and sewing material differ).

Prices of healthcare decreased by 0.04 percent on the back of a 2.51 percent decrease in prices of medications and medical accessories. – The Daily Star

© Copyright The Daily Star 2010.