Lebanon recorded the highest nominal inflation rate in the global food price index reaching 350% in one year from April 2022 to April 2023 according to updated figures released by the Food Security Authority in June.
The latest figures provide an overview of the annual changes in the food index inflation rate in several countries around the world.
The World Bank revealed that food price inflation rates remain high globally across all income categories according to the weekly economic report by Lebanese Credit Bank.
Approximately 70.6% of low-income countries, 81.4% of lower-middle-income countries, and 84% of upper-middle-income countries experienced overall inflation rates exceeding 5% with some even exceeding 10% according to the World Bank’s latest report on food security.Â
The report also highlighted that 80.4% of high-income countries generally suffer from high inflation rates and high food price inflation rates.
The countries with the highest food price inflation rates are in Africa, North America, Latin America, South Asia, Europe, and Central Asia.
The real inflation rate of food prices representing the nominal inflation rate of food prices minus the overall inflation rate exceeded the real overall inflation rate in 84.5% of the 161 countries covered in the report.
Lebanon recorded the highest nominal food price inflation rate in the world during the period from April 2022 to April 2023 reaching 350%. It was followed by Argentina with 115%, and Zimbabwe with 102%.
As for the real inflation rate, Lebanon experienced an 81% annual change in food prices during the mentioned period followed by Venezuela with 35%, Zimbabwe with 27%, and Rwanda with 26%.
Inflation rates are based on the latest data between January 2023 and April 2023 for countries that updated their food price inflation figures and overall inflation rates.
The Lebanese currency (the lira) has been experiencing the worst performance in the world this year with an exchange rate reaching 95,000 liras per US dollar in the black market.
With Lebanon suffering from a shortage of foreign currency, it is likely that inflation will accelerate further as the lira depreciates to new record levels and the cost of imports increases. The government has lifted subsidies on all essential goods except for wheat.
The financial crisis in Lebanon is considered one of the worst crises globally since the mid-nineteenth century and has pushed three-quarters of the country’s population to the brink of poverty.
