FX.co ★ Lebanon Inflation Rate Slows to 4-Month Low

In August 2025, Lebanon experienced a slight reduction in its annual inflation rate, which declined to 14.2%, the lowest observed since April 2025, from 14.3% in the previous month. This deceleration was chiefly attributed to a moderated increase in the costs of clothing and footwear (9.1% compared to 10.5% in July), housing and utilities (17.8% compared to 18.7%), furnishings, household equipment, and routine household maintenance (2.3% compared to 5.9%), and recreation, amusement, and culture (8.7% compared to 10.6%). Additionally, the deflationary trend in communication costs was more pronounced (-0.7% compared to -0.4%). Conversely, the costs increased for food and non-alcoholic beverages (23.6% compared to 21.9%), alcoholic beverages and tobacco (14.1% compared to 13.9%), health (4.8% compared to 4.6%), transportation (1.2% compared to 1%), restaurants and hotels (12.2% compared to 11.6%), and miscellaneous goods and services (27.1% compared to 26.6%). On a month-to-month basis, consumer prices increased by 0.4% in August, a slowdown from the 1.3% rise observed in the prior month.