Lebanon’s annual inflation rate dropped to 1.22 percent in August 2019 from 1.45 percent in the previous month. It is the lowest inflation rate since October 2016, as prices slowed mostly for food & non-alcoholic beverages (0.58% vs 0.63% in July) and clothing & footwear (12.14% vs 17.35%). In addition, cost fell for housing & utilities (-0.49% vs 0.03%), namely water, electricity and other fuels (-3.27% vs -3.12%); transport (-1.27% vs -1.37%); health (-0.23% vs -1.94%) and communication (-0.65%, the same pace as in July). On a monthly basis, consumer prices went up 0.01 percent, after decreasing 0.46 percent in the prior month. Inflation Rate in Lebanon averaged 2.67 percent from 2008 until 2019, reaching an all time high of 11.10 percent in October of 2012 and a record low of -4.67 percent in September of 2015.
Inflation Rate in Lebanon is expected to be 1.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Lebanon to stand at 2.30 in 12 months time. In the long-term, the Lebanon Inflation Rate is projected to trend around 2.40 percent in 2020, according to our econometric models.