Economic Research | Lebanon This Week | Lebanon This Week 635 | Increase in food prices highest in MENA region | Lebanon | Byblos Bank

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Byblos Bank

Lebanon This Week 635

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Increase in food prices highest in MENA region

In its assessment of the impact of the COVID-19 pandemic on food-price inflation in the Middle East & North Africa (MENA) region, the World Bank indicated that prices in Lebanon have surged across all food categories between February 14 and May 28, 2020. The Bank assessed the change in food prices in 19 countries in the MENA region across five main food categories that are carbohydrates, dairy, fruits, meats and vegetables. 

The price of onions in Lebanon rose by 26% between February 14 and May 28, constituting the highest increase in the price of this item in the MENA region. Lebanon, along with Qatar and the UAE, were the only countries in the region that posted double-digit increases in the price of onions. In comparison, the price of onions posted an average growth of 6% in the region. Also, the price of potatoes in Lebanon surged by 23.5% in the covered period, representing the highest growth rate in the price of this vegetable regionally, and compared to an average increase of 3.5% regionally. Lebanon, along with Libya and Yemen, were the only countries in the region that posted increases of above 10% in the price of potatoes. 

In parallel, the price of rice in Lebanon grew by 18% between February 14 and May 28, the highest price increase of this product in the MENA region. Lebanon and Yemen were the only countries in the region that posted a rise of more than 10% in the price of rice. In comparison, the price of rice increased by an average of 4% in the region. Further, the prices of bananas and apples in Lebanon rose by 13.6% and 10.3%, respectively, during the February 14-May 28 period, the highest price surge of these fruits regionally, compared to average increases of 2% and 2.4%, respectively, in the MENA region. Lebanon and Yemen were the only countries that posted double-digit increases in the price of bananas, while Lebanon was the only country to register a rise of more than 10% in the price of apples.

In addition, the price of eggs in Lebanon surged by 16.1% and the price of lettuce rose by 14.6% since February 14, the second highest growth rate in the price of these food products regionally. Also, the price of bread grew by 14% and that of oranges grew by 9.4%, the third highest price surge in the region for such products. In addition, the price of fresh or frozen cattle meat rose by 12.7% in the covered period, the third highest price increase among MENA countries; while the price of cheese grew by 11.8%, the second highest price increase regionally. Further, the price of fresh or frozen chicken surged by 7.3% and the price of processed liquid milk rose by 1.8% since February 14, both representing the fifth highest price increases in the MENA region for such products.
 
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