BEIRUT: Inflation in Lebanon in the month of May increased by 6.06 percent with the consumer price index showing a 119.83 percent jump compared to May 2020, the latest figures from the Central Administration of Statistics show, as the country's economic downturn drives up the cost of living.

Compared to April, the consumer price index, the measurement of average change over time in prices paid by consumers, grew 6.06 percent on average on various expenditures across the country.

The cost of daily life in Lebanon saw a large increase, with the prices of food and non-alcoholic beverages up 13.97 percent since April. In another blight for households, furnishings, household equipment and routine household maintenance rose 17.07 percent, likely due to the demand for repairs and items to be paid only in fresh US dollars or in LBP at the black market exchange rate.

The biggest rise in prices was in the restaurant and hotel sector, which saw a 19.89 percent increase.

The CPI of transportation costs, including expenditures related to cars, gasoline, mechanical repairs and public transport, increased by 8.37 percent.

Other rises were recorded in the cost of clothing and health, while there was a small rise of 1.84 percent in alcoholic beverages and tobacco products.

With the Lebanese pound in free fall, having lost 95 percent of its value since late 2019, consumers are feeling the pinch of massive price increases in everyday items, threatening food security and forcing many to change shopping habits. The pound was trading at 15,350 to the dollar Wednesday, just above its historic low recorded last week.

The Central Bank has been warning since late 2020 that the governments subsidy scheme, implemented to keep prices of everyday items attainable, could no longer be supported as their US dollar reserves diminish.

The impending subsidy withdrawal has resulted in customers panic buying and hoarding goods, fearing a large rise in costs which has in turn left shelves empty and stocks depleted.

Over the last few months the impact of subsidy removal has been felt as price rises on items such as bread, coffee, sugar and fuel have begun to appear.

The Finance Ministry Tuesday announced the fifth rise in the price of bread this year, raising the cost of a 910 gram bundle to LL3,250, up from LL2,750.

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