BEIRUT - Consumer prices increased by 0.51% in July, after witnessing a lift of 0.45% in June, as stated in a report issued by the Consultation and Research Institute (CRI).

During the first seven months of the year 2008, the Consumer Price Index (CPI) increased by 7%, an inflation level that has never been reached since more than ten years. Between the CPI of July 2008 and the one of July 2007, the rise is of 13.94%.

Inflation in Lebanon is particularly explained by external factors like the increase in the prices of petroleum, food commodity, and vital products. Those external information crack the whip of Lebanon and lower the purchasing power.

According to the Consultation and Research Institute, the food and drink prices were the ones that increased the most between July 2007 and July 2008 with a percentage of 20.72. Then come the services related to beauty treatment and well-being (17.97%), transportation and telecommunication (15.97%), shoes and clothes (10.39%), or health (4.4%).

The CPI is calculated on the base of the consumer price of 2004 with a panel of 215 categories covering around 900 products.