FX.co ★ Lebanon Inflation Cools to Five-Year Low

In March 2025, Lebanon’s annual inflation rate decreased to 14.2%, marking its lowest level in five years, compared to 15.6% in February. The primary factors contributing to this decrease are related to a slowdown in price increases in areas such as housing and utilities (which decreased to 16.5% from 18.5%), transportation (which fell to 2.5% from 9%), clothing and footwear (down to 11% from 14.4%), recreation and culture (which declined to 4.5% from 5%), as well as restaurants and hotels (which dropped to 17.3% from 18%). However, prices in the category of furnishings, household equipment, and routine maintenance actually decreased further, showing an 8.4% decline compared to a previous decline of 8.2%. Conversely, the costs of food and non-alcoholic beverages increased, accelerating to 21.4% from 20.5%. On a month-to-month basis, consumer prices rose by 0.4% in March, registering the smallest increase in six months, following a 0.7% increase in February.