Head of the Syndicate of Food Importers Hani Bohsali, explained the reason of the rise in food commodity prices despite the stability in the exchange rate of the dollar, pointing out that "there are two elements that must be considered: the first is the cost factor, and the second is the overall inflation factor.”

"For the seller of the commodity or the trader, there are the costs of the merchandise and the operational expenses of the company, including employee salaries, rents, and delivery of goods. All of these factors affect the final prices of goods presented on the supermarket shelf," Bohsali said in an interview with "Al-Joumhouriya" newspaper.

"From November 2022 to April 2023, an increase in the customs dollar rate was added to these costs, rising from 1,500 LBP to 90,000, resulting in price hikes ranging between 2 and 22% for goods. Additionally, the price of the Value-Added Tax (VAT) set at 11% rose from 1,500 LBP to be calculated according to the official exchange rate. Furthermore, the 2022 budget noted an increase in the flat fee on all goods by 3%, meaning that all goods subject to VAT have incurred an additional tax of 3%," he explained.

"All of these factors are classified as direct costs that have impacted the prices of goods. However, undoubtedly, there are also indirect costs such as the increase in fuel prices, direct inflationary factors resulting from the rise in fees and taxes imposed by the state, which generally exceed 15 to 20%. All of these factors have contributed to the rise in the operational costs of the company, resulting in an increase in the prices of goods. This explains the reason for the instability of prices in dollars," Bohsali added.

" This year there has been a global decline in the prices of some commodities and an increase in others. However, there is certainly global inflation ranging between 3 and 5%. For instance, the prices of rice and coffee in the previous years were higher than they are today due to global inflation. This is before considering local taxes. Therefore, the assertion that pricing goods in dollars will maintain their stability is not valid," he noted.

"In addition to all these reasons, there are social and political factors, including Gaza war, Red Sea crisis, and the increase in shipping costs for goods coming from the Far East... These factors have led to price hikes ranging between 2 and 15% in the cost of goods. If we combine all these reasons from taxes, customs fees, VAT, operational cost, direct and indirect reasons, and the repercussions of the Gaza war and the rise in shipping costs, it can be said that the prices of goods have increased by at least 15% in a year," he concluded.