Lebanon’s annual inflation rate is the highest in the world, according to Bloomberg data.
Lebanon’s annual inflation rate has reached the highest of any country Bloomberg tracks, overtaking Zimbabwe and Venezuela, as the financial crisis in that Middle Eastern country deepens.
The consumer price index rose 137.8 percent from a year earlier in August, down from 123.4 percent in July, according to the Lebanese Central Statistics Administration. Consumer prices increased 10.25% from the previous month, while food prices increased 20.82%.
Inflation in Lebanon has skyrocketed over the past two years as the country’s financial and economic crisis spirals out of control, with politicians doing very little to mitigate its impact. The currency lost almost 90% of its value and plunged three quarters of the inhabitants into poverty.
In recent months, authorities have started to cut subsidies, as most items are now priced at the black market exchange rate. The central bank is strapped for cash and has repeatedly warned the government against continuing subsidies.
After nearly 13 months of paralysis, billionaire and former Prime Minister Najib Mikati has formed a new government that seeks to resume stalled bailout talks with the International Monetary Fund and creditors to restructure debt. Lebanon defaulted on $ 30 billion in Eurobonds last year.