Lebanon’s consumer market has descended into unprecedented price disorder in recent years, particularly in the food sector, despite relative stability in the exchange rate of the U.S. dollar compared with the early stages of the country’s financial collapse.

The sharp and often erratic rise in prices has raised growing public concern, with many questioning whether the volatility reflects global economic pressures or unchecked profiteering amid weak State oversight. 

Importers and traders argue that the increases are largely driven by global factors, including higher international commodity prices and currency fluctuations, while emphasizing that Lebanon operates under a free-market economic system.

Lebanon’s economy functions under a liberal market model in which the State does not set fixed prices for goods and services. Still, according to Tarek Younes, head of the Consumer Protection Directorate at the Ministry of Economy, this does not mean the market is unregulated.

“There are legal safeguards in place, particularly regarding profit margins on essential food items,” Younes told Nidaa Al-Watan. “These measures are designed to protect consumers and prevent unjustified price hikes, even in the absence of direct price controls.”

Under Lebanese law, profit margins on basic food products—such as grains, fruits, vegetables, and meat—are capped, typically ranging between 10 and 12 percent and up to a maximum of 20 to 22 percent, depending on the product.

Market inspectors are tasked with enforcing these limits by reviewing invoices and comparing wholesale purchase prices with retail selling prices. Violations result in formal citations and referrals to the judiciary. Oversight also extends to price labeling, ensuring shelf prices match checkout prices, and to food safety standards, including storage conditions, refrigeration temperatures, cleanliness, and product quality.

Failure to comply with food safety regulations or engaging in practices such as weight manipulation constitutes a legal offense, Younes said.

He stressed that transparent price display is both a legal obligation for retailers and a fundamental consumer right.

“Clear pricing allows citizens to make informed purchasing decisions and reflects a commitment to transparency,” he added.

Younes said the Consumer Protection Directorate holds broad enforcement powers extending beyond food prices. These include monitoring private electricity generators to ensure compliance with official tariffs, overseeing fuel stations to verify correct pricing and quantities, and inspecting commercial outlets for price manipulation.

The directorate has also expanded citizen engagement through a digital complaints system, allowing consumers to file and track complaints online or via a mobile application.

Once a complaint is submitted, users receive notifications confirming registration, the start of an investigation, and its outcome. Citizens can also provide feedback on how their cases were handled, a process Younes said enhances transparency and accountability.

Since the start of 2025, the Consumer Protection Directorate has received 1,133 complaints through its digital platform and recorded around 1,400 violations, according to Younes.

The most common violations involved private electricity generators, particularly overpricing and billing disputes, as well as food safety and pricing breaches. Roughly 600 violation reports were issued for infractions related to food safety standards or exceeding legally permitted price margins.

Younes urged citizens to actively report violations, saying that public participation remains essential to restoring trust and discipline in Lebanon’s fragile consumer market.

Nabil Fahed, head of the Supermarket Owners’ Syndicate, echoed the emphasis on free competition, noting that price competition plays a central role in regulating the market.

“Competition helps keep prices in check,” Fahed told Nidaa Al-Watan. “But that does not eliminate the need for oversight to ensure compliance with laws and standards.”

He underscored the importance of regulatory monitoring by relevant ministries, particularly in areas such as food safety, product quality, and accurate weights and measures.

Fahed also pointed to price transparency as a key competitive tool. Clear price labeling, whether in-store or through digital platforms, allows consumers to compare options and drives healthy competition among retailers.

Hani Bohsali, head of the Food Importers’ Syndicate, said claims of dramatic price hikes often do not align with actual data.

“When discussing food prices, we must rely on invoices and source prices, not perceptions,” Bohsali said. “Talk of 20 or 30 percent increases since the beginning of the year does not reflect reality across the board.”

According to Bohsali, some food items have seen price declines, while others have risen for verifiable reasons. He cited vegetable oils as an example, noting that global prices increased by about 15 percent, while local prices rose by no more than 10 percent, as documented by invoices.

He also pointed to the euro’s appreciation—from around 1.05 at the start of the year to approximately 1.16—as a factor pushing up prices of European imports. Lebanon sources roughly 30 percent of certain essential food items from the eurozone, making local prices sensitive to currency movements.

At the same time, staples such as rice and sugar have registered price declines, Bohsali said, stressing that unjustified increases in these products can be directly challenged by the Ministry of Economy.

Consumer price index data from the start of the year shows overall price movements often remain below 20 percent, he added, far from the claims of 50, 100, or even 200 percent increases circulating in public discourse.

Bohsali attributed moderate price increases to a combination of factors, including exchange-rate fluctuations, higher shipping and import costs, volatility in global raw material prices, rising energy costs, fuel taxes that drive up transportation and storage expenses, and increased operational costs for businesses, including wages and regulatory fees.

Despite these explanations, Bohsali acknowledged the heavy burden on consumers.

“People feel crushed by living costs, especially since salaries have not kept pace with price increases,” he said.

He described a vicious cycle in which private companies are unable to raise wages due to weak economic growth, while growth itself remains unattainable without investment and higher purchasing power. The absence of an effective banking sector and limited access to financing have further constrained businesses’ ability to expand and improve wages.