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Lebanon raises subsidised bread price for third time in less than a year

Bread dough moves along a production line at an automated bakery in Lebanon's capital Beirut on July 1, 2020. - The Lebanese government raised the price of a 900-gram loaf of partially subsidised bread to 2,000 Lebanese pounds from its previous price of 1,500 pounds in the first such price change in eight years. (Photo by JOSEPH EID / AFP) (Photo by JOSEPH EID/AFP via Getty Images)

Bread dough moves along a production line at an automated bakery in Lebanon's capital Beirut on July 1, 2020 [JOSEPH EID/AFP via Getty Images]

The Lebanese government has increased the price of the 960 gramme partially subsidised bread from 2,500 lira to 3,000 lira ($1.66-$1.99).

The Lebanese Ministry of Economy and Trade said in a statement that failure to form a government has led to a significant decrease in the value of  the country’s currency against the US dollar, and thus led to an increase in the prices of the raw materials used in bread production.

This is the third time that the Lebanese government has increased the price of bread; a staple food.

Last June, the Lebanese government increased the price of bread from 1,500 lira to 2,000 lira, before raising it a further 20 per cent – to 2,500 lira – in February this year.

The Lebanese pound is now trading at nearly 15,000 lira to the US dollar on the black market.

Despite suffering the worst economic crisis since the civil war, political parties have been unable to agree on a government led by Prime Minister-designate Saad Al-Hariri.

According to the United Nations, more than half of Lebanon’s population lives below the poverty line.

According to official data, the annual inflation rate in Lebanon hit 145.8 per cent at the end of last year.

The World Bank estimated in early March that the price of meat has increased by 110 per cent within a year while the price of chicken rose 65 per cent.

READ: Brawls in shops as Lebanon’s financial meltdown hits food supply 

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