Lebanon’s consumer prices inflation declined to 1.69 percent year-on-year in June 2019 from 3.48 percent in the previous month. This was the lowest inflation since October 2016, as prices rose at a softer pace for housing & utilities (0.10 pct vs 3.49 pct in May); food and non-alcoholic beverages (2.36 pct vs 4.39 pct); miscellaneous goods & services (2.15 pct vs 2.23 pct); furnishings & household equipment (5.42 pct vs 5.58 pct); and alcoholic beverages & tobacco (0.74 pct vs 0.84 pct). In addition, transport cost declined (-1.59 pct vs 0.64 pct). On the other hand, inflation was steady for education (at 5.08 pct) and restaurants & hotels (at 1.49 pct) while prices increased faster for recreation & culture (7.10 pct vs 6.69 pct). Additionally , prices dropped at a softer pace for both health (-1.30 pct vs -2.16 pct) and communication (-0.49 pct vs -0.50 pct). On a monthly basis, consumer prices decreased 0.84 percent, following a 0.12 percent gain in May. Inflation Rate in Lebanon averaged 2.69 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 3.20 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 2.50 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.