Attachments
OPERATIONAL CONTEXT
Lebanon is now in its fourth year of a deep economic, political, and social crisis. In June 2023, Lebanon recorded the second highest food price inflation in the world with a nominal food price inflation rate of 280 percent (YoY),as reported by the World Bank.
After nine months of a presidential vacuum, Lebanon is facing another leadership vacuum as the terms of the Governor of Banque du Liban(BDL) ended in July 2023. Lack of political agreement to appoint a successor raises uncertainties over an already fragile system and further delays the implementation of an economic recovery plan.
The ongoing economic and political instability continues to have a detrimental impact on the food security of both Lebanese and Syrian households. The second Integrated Food Security Phase Classification (IPC) for Lebanon,) conducted in May 2023, estimates that 25 percent of the analysed population (1,411,000 individuals) are experiencing acute food insecurity.
Increased coverage of humanitarian food assistance, enhanced stability of the food supply chain, more employment opportunities for Lebanese nationals, and other factors led to a reduction of people experiencing acute food insecurity compared to September 2022 (37 percent of the analysed population). However, another 45 percent of the total population are struggling to maintain adequate food consumption, highlighting the urgency to take action to protect livelihoods and mitigate risks of a slide back into acute food insecurity.
WFP is at the forefront of the response to Lebanon’s economic and refugee crisis, supporting over 1 million refugees and 700,000 Lebanese nationals to meet their food and other basic needs. In addition, WFP implements cash transfers for an additional 400,000 Lebanese individuals through the Government’s Emergency Social Safety Net. Together with the World Bank, WFP is a key partner to the Government of Lebanon to strengthen national social safety nets.
SITUATION UPDATE
The cost of the full Survival Minimum Expenditure Basket (SMEB) for a family of five monitored by WFPreached LBP 27.7 million (US$ 302) in June, registering an 11 percent monthly increase and a 240 percent annual increase.
The cost of the food basket alone increased by 12 percent between May and June 2023 to reach LBP 2.8 million (US$ 30.5) per person/month. The cost of the non-food basket also increased by 9 percent for the same period.
The consumer price index (CPI) increased by 7 percent between May and June 2023 and by 254 percent since June 2022, while yearly food inflation reached 280 percent.
Following Russia’s withdrawal from the Black Sea Grain Initiative (BSGI), it is expected that global food commodity prices will increase, including wheat, a staple food in Lebanon. As a result, the cost of state-subsidized bread bundles is likely to increase in the near term.