Lebanon Inflation Hits Lowest Since 2020

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The annual inflation rate in Lebanon eased to 10.9% in January 2026 from 12.2% in the previous month, marking the lowest reading since January 2020. Prices slowed mostly for alcoholic beverages and tobacco (7.0% vs 8.1% in December 2025), housing and utilities (15.0% vs 17.2%), recreation, amusement, and culture (31.3% vs 31.6%), restaurants and hotels (7.2% vs 7.6%), and miscellaneous goods and services (14.2% vs 21.6%). Additionally, transportation costs fell (-0.7% vs 3.2%), while deflation deepened for furnishings, household equipment, and routine household maintenance (-2.3% vs -1.6%) and communication (-1.6% vs -0.7). Meanwhile, prices continued to increase for food and non-alcoholic beverages (15.1% vs 14.6%) and clothing and footwear (2.8% vs 2.0%). On a monthly basis, consumer prices declined by 0.1% in January 2026, following a flat reading in the previous month.

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