The World Food Program's (WFP) recent findings reveal a concerning trend in Lebanon's economic landscape, particularly impacting the affordability and availability of essential goods. As of May 2024, the cost of basic necessities has skyrocketed, with significant implications for Lebanese households.

The SMEB, which covers the bare minimum required to meet lifesaving needs, now costs LBP 37.3 million (USD 414) for a family of five, reflecting a 50% annual increase in local currency and a 58% rise in US dollars. The MEB, which encompasses broader essential needs, costs LBP 46.2 million (USD 513), also marking significant increases over the past year.

According to WFP’s latest report, the cost of food has also seen a sharp rise. The food SMEB per person reached LBP 3.13 million (USD 34.5) in May, a 25% increase in Lebanese pounds and a 30% increase in US dollars compared to the previous year. Meanwhile, the food MEB per person stood at LBP 4.13 million (USD 45.8), showing a 22% increase in local currency and 28% in US dollars over the same period.

Monthly changes were primarily driven by a 2% increase in bread prices, attributed to uncertainties regarding wheat import subsidies, and an 11% increase in potato prices due to labor shortages affecting local production.

These rises are largely driven by increases in the prices of staple foods such as bread and potatoes, exacerbated by uncertainties over import subsidies and labor shortages.

Non-food items have not been spared from price hikes. The Non-Food SMEB reached LBP 21.7 million (USD 241.5) and the Non-Food MEB LBP 25.6 million (USD 284.7) in May 2024. Over the past year, these costs have surged by 75% and 86% in Lebanese pounds, respectively, with even higher increases in US dollars. Significant contributors to these increases include skyrocketing rent prices and higher costs for residency renewals.

Lebanon's broader economic landscape remains bleak. The World Bank and Bloomberg have downgraded growth forecasts for 2024, while the United Nations Development Programme (UNDP) highlighted a continuous decline in the Human Development Index (HDI). The protracted financial crisis and conflict have also led to significant human and economic costs, estimated at USD 8.4 billion in 2023 by the Global Peace Index.