The consequences of Israel's war in the Gaza Strip continues to affect the global economy after the escalation of unrest in the southern Red Sea, which leads to an increase in shipping costs and reflects negatively on prices, which makes us wait for the next phase. The consequences will be on the price of goods in Lebanon.
Anis Abu Diab, economist and member of the Economic, Social and Environmental Council, said, “There are a large number of Lebanese merchants, even though they import food products at the old transport prices, namely al-Mantab and the Red Sea before the dangers that Bab saw. They deliberately raised the prices and we see this with differences.” Prices of market trip.
In an interview with Lebanon Debate, he said, “This matter will inevitably lead to an increase in the price of imported goods and foodstuffs, because crossing the Bab al-Mandab poses greater risks, which means that transport companies will go through the Horn of Africa route. Goods must be delivered, and this leads to an increase in costs.” “The next step is transportation and insurance, which will reflect negatively on prices.”
However, the expert Abu Diab affirms, “The price increase should not be more than 5% or 10%, but due to the poor and lack of monitoring and accountability in Lebanon, the prices will see a crazy increase in the coming months. , because traders take advantage of these opportunities to increase their profits.”
It will be difficult for the Lebanese in the coming months if things stay as they are, so I hope that the authorities will take strict measures to stop monopolists from exploiting and raising prices as there is a lot of chaos in the markets. A political decision has to be taken to control this.