Oil affects the remaining purchasing power

Al-Akhbar wrote: The consumer price index in Lebanon rose by nearly 10% during the first half of 2026. The Central Statistics Administration’s figures reveal that the stability of the lira’s exchange rate did not lead to a stabilization of the cost of living, as the war and its repercussions reintroduced a new wave of inflation through the rise in oil and energy prices, without being matched by any government or monetary policy that limits its transmission to the consumer. The impact of this shock was not limited to fuel prices. In an economy that imports the majority of its needs, such as the Lebanese economy, and relies on imported fuel to secure transportation, electricity, and production, any increase in oil prices quickly turns into an additional cost that is included in the price of almost every commodity that reaches the market.

Transportation topped the list of expenditures with the highest increase, as its index increased by 29.07% since the beginning of the year. This increase does not only mean that citizens are now paying more for transportation or purchasing gasoline, but it also raises the cost of transporting food and goods and operating institutions, agricultural machinery, and distribution chains. Therefore, the increase in fuel turns into an inflation multiplier, moving from the transportation sector to the entire economy. The water, electricity, gas and other fuels item came in next place, with an increase of 23.14% since the beginning of the year. This reveals the extent of the dependence of families and institutions on private energy sources, especially generators. Every increase in the price of diesel is reflected in electricity and water bills, making the energy shock a direct burden that families cannot avoid. Also, restaurant and hotel prices have increased by 13% since the beginning of the year, as a result of the rise in the cost of energy, raw materials, and transportation. As for the prices of food and non-alcoholic beverages, they increased by 7.3%. Thus, the items that rise the most are the same basic items that cannot be easily reduced, cannot be dispensed with, and are supposed to be the natural rights of the citizen in any country.