The Consumer Price Index (CPI) published on Monday by the Central Administration of Statistics showed an annual growth rate of 41.785 in Lebanon in June, nearly 10 points lower than the previous month (+51.59%).

The last time this index, which measures inflation, showed a value below 50% was in April 2020 (+46.55%). 

The index fell below the 100% mark for the first time since June 2020 in March. The CPI only measures price changes in Lebanese pounds (LL).

This slowdown was expected since the exchange rate between the Lebanese pound and the U.S. dollar is currently at LL 89,500 per dollar, a stable level for nearly a year and close to its June 2023 level (it went from LL 94,000 to LL 92,600 per dollar between June 1 and June 30, according to the informal site lirarate.org).

Every month, the CPI increased by 0.28% in June (compared to 0.02% in May), indicating that overall prices have been relatively stable for at least two months. This is reflected in the detailed monthly changes of the 12 sub-indices that make up the CPI, with as many decreases as increases.

The highest increase was in housing and utility prices (+2.01% monthly), while "miscellaneous goods and services" showed the most significant relative and absolute decrease (-2.42%). Leisure prices also slightly declined (-2%) this month, which marks the start of a summer season under the uncertainties linked to the Gaza war and its spillover effects in southern Lebanon.

Regionally, the CPI decreased overall in Nabatiyeh (-0.5% monthly) and Mount Lebanon (-0.31%). At the same time, it increased in all other regions, starting with southern Lebanon (+2.57%), followed by Beirut (+1.29%), northern Lebanon (+0.49%), and finally the Bekaa (+0.44%).