It was not surprising for citizens that Lebanon ranked first globally on the World Bank's food inflation index recently published (August 1), surpassing countries like Zimbabwe and Venezuela. However, it may be very surprising that traders attribute the reasons to geopolitical factors, especially since the "madness of prices" is affecting Lebanese goods, such as vegetables and fruits, which have increased by more than 200 percent over the past two months.
#### Unjustifiable Rise
The term "price hysteria" is no longer surprising in Lebanon; it is no longer linked solely to the rise in the dollar's price but has become a general concept affecting all Lebanese classes, especially in the absence of clear mechanisms to combat price hikes. Since the beginning of summer, Lebanese markets have not witnessed any decreases in food prices, despite the relatively stable exchange rate. Traders claim that external factors drive prices, along with increased transportation and shipping costs due to energy prices. This might explain the rise in prices for imported products; however, for Lebanese food items or those "smuggled" from neighboring countries, this reasoning is illogical and unjustifiable.
Mariam Haidar (a mother of three) says, "It's very strange how goods are priced; you can find the same item at different prices in several places." She adds to "Al-Modon": "We have become accustomed to the rising prices of locally manufactured canned goods with fluctuations in the exchange rate, but it's surprising that the same product can have different prices at various sales points. For example, a tin of fava beans or chickpeas can reach over 30,000 in some stores in the capital, while rising in other areas to more than 40,000. The same applies to pasta or sauces, which vary in price between 5,000 and 7,000 lira depending on the area."
#### Absence of Regulation
Lebanese goods, whether imported or locally manufactured, are not subject to any enforceable laws, although the Ministry of Economy, through the Consumer Protection Directorate, is tasked with combating price increases. However, it has largely failed to curb unjustifiable price hikes. This has led the President of Lebanon to sign a decree in May establishing the "National Council for Price Policy" under Decree No. 9334; yet this council has also not succeeded in unifying prices across Lebanese regions.
The head of the Consumer Protection Association, Zuhair Baro, believes that the chaos in prices stems from the inability of Lebanese authorities to confront traders, who he argues benefit from the high dollar price to increase prices. He states to "Al-Modon": "It is clear that there is a systematic plan by traders and banks aimed at 'dollarizing prices'; meaning they are imposing prices in dollars instead of the Lebanese lira. However, this equation is illogical for two reasons. First, a very small segment still receives salaries in dollars, which does not exceed 5 to 8 percent, while the rest continue to receive their salaries in lira, leading to the fundamental question of where citizens will get dollars to buy food?"
#### Agricultural Products Are Soaring
Not only imported or locally manufactured goods have seen price increases; the rise includes prices of vegetables and fruits as well. Imagine that the price of a bunch of parsley or even mint has risen in recent weeks by more than 50 percent, primarily due to fuel prices. A single bunch sells for 4,000 lira in poor areas of Beirut and rises to 8,000 lira in other areas in the heart of the capital, and it can even reach 12,000 lira in some larger supermarkets. The same applies to the prices of staple vegetables requested on Lebanese tables, such as potatoes, lemons, and zucchini.
Ahmad Yassin, who works in the food trade in the Khalda area south of the Lebanese capital, does not deny that prices have not decreased for nearly two months. He confirms to "Al-Modon" that traders have suffered losses due to fluctuations in the dollar price earlier this year, precisely when the exchange rate surged to 38,000 lira due to political deadlines and subsequently dropped 10,000 lira at once. Thus, there has become an unwritten rule among traders to add between 2,000 and 3,000 lira on the exchange rate in the parallel market to secure their rights in import and export.
For his part, the head of the Importers of Food Products in Lebanon, Hani Bakhli, attributes price increases to the economic crisis and global inflation levels, in addition to the crisis of the devaluation of the Lebanese lira against the dollar stemming from the economic crisis, which makes prices appear higher than before.
These justifications lead Baro to indicate that food prices will continue to rise, and he expects the crisis to worsen in the absence of regulation, reform decisions, and recovery plans, leaving food security in the hands of traders and banks that control the markets.
