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By Libya Herald staff.
London, 2 December 2014:
The Central Bank of Libya (CBL) has reported today that inflation (the Retail Price Index) was down to one percent for the first nine months of 2014.
The latest inflation rate is a full 1.6 percent down on the full year figure for 2013 which stood at 2.6 percent. This is also down from the 2012 figure of 6.1 percent and well below the 2011 war year high of 15.9 percent. In 2010, the last pre-revolution year, inflation stood at 2.4 percent.
Of the eight items in the weighted basket used by the CBL to measure inflation, five items were up and three were down. The highest increase in inflation came in the education, culture and entertainment category (1.9 percent), followed by transport and communications as well as housing and accessories (both 1.7 percent) and food, drink and tobacco (1.6 percent).
However, inflation was down in the clothing and shoes category ( minus 2.9 percent) and in the various goods and services category (minus 1.6 percent), the CBL reported.
The CBL put the rise in prices in some categories to the fact that the figures cover the period of the fasting month of Ramadan as well as the school starting month.
On the one hand, the economic news will come as welcomed relief to both Libyan citizens, suffering from post-revolution political instability as well as economic stagnation, as well as Libya’s split political establishment.
The latest 2014 inflation figures show a definite downward trend from the 2011 inflation high of 2011, but, on the other hand, they also confirm the lack of large economic activity in Libya due to the insecurity and political instability. [/restrict]
