Despite official statistics suggesting a decline in inflation, Lebanese consumers continue to face rising prices, particularly for food and essential goods, with experts pointing to structural economic issues as the main drivers.

The Central Administration of Statistics (CAS) reports annual inflation at around 15% and the Lebanese pound stabilized at roughly 89,500 per U.S. dollar. Yet prices in supermarkets tell a different story, prompting questions about weak oversight and uneven pricing in the market.

Economist Anis Bou Diab, a member of Lebanon’s Economic, Social and Environmental Council, said the causes are multifaceted.

“Anyone entering the markets can see the sharp increases, especially in food, since the start of the year,” he told Nidaa Al-Watan newspaper.

One major factor is the decline in the U.S. dollar’s global purchasing power, which has fallen 15–17% since early 2025. Lebanon imports roughly 85% of its consumer goods, meaning higher global prices directly translate into higher domestic costs.

Rising production costs also play a role, as Lebanese industries rely heavily on imported raw materials. Higher electricity, transport, and financing costs further drive up prices. Electricity alone costs approximately 37 cents per kilowatt-hour, among the highest globally.

The expert also point to pricing practices by traders and manufacturers. Shifts in customs duties tied to fluctuating exchange rates—from 1,500 to 15,000 and now 89,500 Lebanese pounds—have allowed some businesses to raise prices disproportionately, benefiting large importers at the expense of low-income households.

Weak market oversight compounds the problem. Bou Diab said Lebanon’s quasi-monopolistic market is controlled by a small number of institutions, limiting competition and keeping prices high.

Finally, infrastructure inefficiencies, including high costs for internet, communications, and transport, add to operational costs and push final prices upward.

Bou Diab stressed that real price stabilization requires improving competitiveness through economic reforms, supporting productive sectors, and rebuilding infrastructure.

“Without a balanced economy, a functional banking sector, and efficient infrastructure, lowering prices or improving purchasing power remains extremely difficult,” he said.