The Consultation and Research Institute has been calculating the Consumer Price Index on a monthly basis since 1977 for Beirut and its suburbs and tracks its evolution using modern statistical tools. The CPI base is composed of around 700 consumption goods and services.

Our CPI was the sole reference for formal wage adjustment in the 1977-1984 period and a major reference after 1984. It is still used by many local government bodies and international organizations such as the IMF, World Bank etc.

What is the consumer price index?

The Consumer Price Index (CPI) is a measure of the average change in a country’s general level of prices based on a typical market basket of consumer goods and services that people buy for day to- day living. Used as an economic indicator, a deflator of other economic series and, last but not least, a means of adjusting wages, the CPI affects nearly everyone in Lebanon.

Why CRI’s consumer price index?

The CPI market basket, which is meant to represent all goods and services purchased for consumption on the Lebanese markets, was developed by CRI1 based on the Household Expenditure Survey conducted by the Central Administration of Statistics (CAS) in 1997 taking the year 2004 as the base-year. The CPI takes into account the structure of expenditures of households in the four middle income brackets (from 500,000L.L. to 2,400,000L.L. per month) who represent around 69% of the households residing in Greater Beirut. CRI classified all expenditure items into more than 230 categories (including 720 items), and arranged them into nine major groups. Following is a list of these groups and examples of items included within each of them:

• • FOOD AND BEVERAGES (e.g. bread, milk, coffee, chicken, snacks);
• • APPAREL (e.g. men’s clothing, women’s clothing, footwear);
• • HOUSING (e.g. electricity, gas);
• • DURABLE CONSUMER GOODS (bedroom furniture, household cleaning products, household paper products);
• • HEALTHCARE (prescription drugs and medical supplies, physicians’ services, hospital services);
• • TRANSPORTATION AND TELECOMMUNICATIONS (new vehicles, gasoline, telephone services);
• • EDUCATION (school tuition and fees, school books);
• • RECREATION (newspapers, magazines, photographers and film processing);
• • OTHER GOODS AND SERVICES (cosmetics, perfume, haircuts, jewelry, financial services).

The CPI includes the taxes that are directly associated with the prices of specific goods and services (such as the VAT and excise taxes). However, it excludes taxes that are not directly related to the purchase of goods and services (such as the income tax and NSSF contributions). Moreover, the CPI does not include investment purchases, such as stocks, bonds, real estate, and life insurance. These items relate to savings and not to day-to-day consumption. Every month, CRI data collectors visit or call a certain number of pre-selected retail establishments and institutions. The collectors record the prices of about 600 items every month. The recorded information is screened and double-checked by commodity specialists who have detailed knowledge about the particular goods or services priced. They make any necessary corrections or adjustments in order to ensure consistency and comparability in the index, prior to the data processing phase. All CPI components are updated on a monthly basis except apparel and healthcare, which are updated on a quarterly basis, and education, which is usually updated annually. Data pertaining to healthcare is provided to CRI by MEDNET/LIBAN.

For a CPI subscription, contact us.