29 Mins
Source:
نداء الوطن
Wage growth lagging behind costs
The article shows that inflation in Lebanon reached a compounded rate of approximately 648% between 2013 and 2023, with the purchasing power of wages eroding significantly. The minimum wage of about $312 is insufficient to cover the basic food basket needed by a family of four, which costs around $400–$500 per month. Continuous increases in the prices of goods, especially at supermarkets—such as higher prices for meat, fruits, and vegetables—are fueling the severity of the economic crisis. The minimum wage fails to keep up with the cost of living, largely due to the absence of a wage indexing system linked to the cost of living index, causing wages to lose their ability to adjust with ongoing inflation. Additionally, rising oil prices and electricity outages increase the burden on citizens, who are paying two bills for electricity services. The report indicates that the poverty rate has risen to 40%, and Lebanon is expected to lead Arab countries in food price inflation by 2026, one of the highest rates globally, which threatens the stability of living conditions and the overall economy.
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