Inflation up in June as oil prices stabilize

The Consumer Price Index (CPI) rose by 0.67 percent to 96.27 in June compared to that in May. The prices of water, electricity, gas, and other fuels jumped by 2.65 percent in June compared to the previous month while the cost of transportation rose by 1.24 percent, according to the Central Administration of Statistics (CAS).

The decline in oil prices has abated and is reflected in the monthly CPI, said economist and statistician, Robert Kasparian. It is too early to talk about a shift from the deflationary trend, because demand is still weak and markets are in a lull now, he said. Economists told Lebanon Opportunities last month that they expect the deflation to eventually decelerate or turn into a healthy inflation.

The CPI fell by 0.98 percent when compared to June 2015, mainly due to a sharp decline in oil prices and lower costs of foodstuff and raw materials.

The prices of water, electricity, gas and other fuels plunged by 8.11 percent while transportation costs fell by 5.97 percent.