In Numbers: How Have Food Prices Risen?

Hani Bahsali, head of the Lebanese Food Importers Syndicate, stated in a statement that "food security is not only related to the availability of food, but also to citizens' ability to access it," noting that this ability has come under pressure due to economic conditions and rising costs of several services and basic needs.

Bahsali indicated that "discussions about the impact of developments related to the Strait of Hormuz and Bab el-Mandeb and the non-arrival of goods must be separated from the issue of their direct impact on food prices," explaining that "the impact of the Strait of Hormuz is primarily linked to oil, and consequently to energy prices, which in turn reflect on commodity prices and ultimately affect consumers' ability to access food."

Bahsali said: "The economic crisis and the rising cost of transportation, energy, schools, healthcare, and other basic needs have imposed additional pressures on citizens. However, he emphasized that the rise in food prices remains lower than the increase recorded in many other expenditure items."

He clarified that there is an increase in food prices, which is related to the operating expenses of companies and suppliers, but these increases remain at moderate rates, usually ranging between 3 and 5 percent, and may reach up to approximately 10 percent for some items as a maximum.

He noted that a larger percentage increase in the price of some items does not necessarily mean that the increase covers all food products, pointing out that some goods may record rises reaching 30 percent, but this can happen in one or two specific categories. He gave the example of meat, which witnessed a noticeable rise due to global price increases, while other categories, including poultry, did not record the same increases.

Bahsali revealed that increases in food prices are linked to several factors, including transportation, shipping, and energy costs, in addition to the nature of each commodity and its dependence on energy, whether it requires refrigeration or otherwise. Therefore, the percentage of increase varies from one item to another.

Bahsali pointed out that data from the Consumer Price Index issued by the Central Administration of Statistics shows that the average increase in food prices did not exceed 1 to 2 percent compared to the previous month, noting that the previous two months saw a decrease in prices according to these data.

Bahsali explained that the main idea lies in correctly understanding the percentage of increase, clarifying that if the cost of a commodity rises by 5 percent, a commodity priced at $10 becomes $10.50, not $15. He considered that there is sometimes a gap in how consumers perceive the rates of increase, especially when comparing commodity prices with the cost of some services.

Bahsali stressed that current pressures are not limited to the Lebanese citizen alone, but also extend to importing and manufacturing companies, confirming that the crisis puts pressure on various parties, and that companies' ability to provide assistance remains linked to their financial capacity in light of rising operating costs.

Bahsali affirmed that what is required from the Lebanese state, as much as possible, is to alleviate burdens on citizens, particularly by not imposing new taxes, and working instead to ease pressure on energy prices, even temporarily, by reducing taxes and fees imposed on them.