Inflation in Lebanon is not only a story of high cost; it is also a story of a highly concentrated and quasi-monopolistic market. This structure has a price, and the consumer is the one who pays it.
Reading 16.66 percent as cost inflation only is an incomplete reading. The figure reflects the rise in prices, but it does not reveal how this increase was distributed between cost and margin.
A market in which sectors enjoy this level of concentration (i.e., control by a small group of companies) turns quasi-monopoly into an inflationary factor in itself. Concentration does not automatically mean collusion, but monopoly or quasi-monopoly, weak competition and high barriers to entry give the dominant player greater ability to pass on cost increases and maintain the price when costs fall.
Labor unions in Lebanon are preparing for a new confrontation with the authorities over rampant price increases. According to the Central Administration of Statistics, annual infla…