The rising cost of living in Lebanon is no longer a mere description of an economic crisis; it has become one of the most pressing challenges facing the country. Relative to average wages, Lebanon now ranks among the most expensive countries in the Middle East and even the world. Beirut was ranked seventh in the Middle East and North Africa in the 2025 Cost of Living Index, scoring 42.4 points, and 168th globally, according to data from the global database Numbeo.

Numbeo’s rankings are widely used to analyze economic trends regionally and globally, providing detailed data on the cost of living in cities worldwide. Its metrics compare the prices of essential goods and services against those in New York City.

Prices in markets have risen sharply, while wages have remained largely stagnant, leaving many households barely able to meet basic needs. A significant factor behind these pressures is the financial collapse that began in October 2019, when the Lebanese pound lost more than 98% of its value amid the absence of clear economic support policies.

The cost of daily life has exceeded the ability of large segments of the population to meet basic needs. Frozen bank deposits and eroded purchasing power have widened socio-economic gaps, altering consumption habits: meat and chicken are considered luxuries, cheeses are purchased by the slice, fuel costs heavily burden students and workers, and access to healthcare has become nearly impossible. Meanwhile, the middle class has shrunk to historic lows, and tens of thousands of young people have emigrated in search of jobs and a dignified life.

Education has also suffered. With skyrocketing private school tuition fees, thousands of students have turned to the public education system, which is ill-equipped to accommodate them amid a shortage of teachers and resources. Parents face a stark choice: expensive private schooling or inadequate public education.

Despite multiple increases to the minimum wage since 2023, most were largely symbolic, with many private institutions failing to implement them. This has left minimum wages substantial in local currency but nearly worthless when measured in dollars or against the actual consumer basket.

According to the World Food Programme, the cost of a “survival food basket” for a family of five reached 44.2 million Lebanese pounds ($492) in May, an 8.2% increase since the start of the year. Economists note that the minimum wage covers less than 30% of basic needs, highlighting a severe income crisis that rivals the challenge of rising prices.

Even with the exchange rate stabilizing around 89,500 pounds per dollar and annual inflation falling to about 15%, food and consumer goods remain significantly expensive. A local economic expert, who spoke to Addiyar newspaper last week, attributes the sustained high prices to several interlinked factors:

• Declining global purchasing power of the dollar.

• Rising local production costs due to dependence on imported raw materials.

• High electricity and transportation costs.

• Exploitation of fluctuating customs duties by some merchants to increase prices.

• Weak market oversight and monopolization of essential goods by a few entities.

The expert stressed that controlling prices requires more than administrative intervention. It also depends on strengthening competition, supporting productive sectors, especially food industries and agriculture, and improving infrastructure to lower operational costs for electricity, transportation, and communications.

“Reducing prices and improving purchasing power depends on a balanced economy, a healthy banking sector, and effective infrastructure that allows local producers to operate at reasonable costs and compete fairly,” he added.

Regional Comparisons

Lebanon’s economic pressures are stark when compared to neighboring countries. In Jordan, the cost of living is about 18% lower, and rent in Beirut is roughly double that of Amman. With a minimum wage of around 260 Jordanian dinars ($360) and an average income exceeding 1,500 dinars ($2,100), Jordanians experience a more balanced ratio between income and living costs.

In Egypt, living costs are 60–65% lower than in Lebanon despite high inflation, and with an average salary of 14,000 Egyptian pounds ($280) and a minimum wage of 7,000 pounds, Egyptians enjoy relatively greater purchasing power due to lower housing, food, and transport costs.

In the Gulf states, including the UAE and Saudi Arabia, the cost of living, housing, and leisure is among the highest in the Arab world, but high incomes keep living costs proportionate, providing room for saving and a better standard of living. This comparison illustrates that Lebanon’s crisis stems not only from high prices but from the collapse of income value relative to the cost of living. Dubai tops the Arab cities’ cost-of-living ranking with 58 points, followed by Abu Dhabi at 52.6, while Alexandria ranks as the cheapest Arab city with 17.9 points, according to Numbeo’s 2025 index.