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Inflation Deepens Libya's Economic Hardship

Inflation Deepens Libya's Economic Hardship

Libya Review30-06-2025
The World Food Programme (WFP) has recorded the sharpest monthly increase in Libya's food expenditure so far in 2025, with the cost of the minimum expenditure food basket rising by 8.2% in May to LYD 983.82.
According to the report, this increase is primarily driven by severe price hikes in western Libya, particularly in Tripoli, where mid-May armed clashes disrupted trade and supply chains. As a result, the cost of living surged, with the western region seeing a dramatic 24.2% increase in the average food basket, now costing LYD 1,065.67.
Meanwhile, eastern Libya experienced a slight decrease in costs, down 1.7% to LYD 909.4. However, the city of Kufra recorded the highest food basket cost in the region at LYD 1,081.13. The WFP attributed this to rising demand and pressure on local services, exacerbated by a steady influx of Sudanese refugees.
Nationally, the food price index rose by 8.9%, reaching LYD 864.02, while the non-food price index increased by 3.5%, totalling LYD 119.80. These figures reflect mounting inflationary pressures driven by the weakening Libyan dinar and supply-side constraints.
The WFP warned that continued volatility in basic commodity prices poses a significant risk to household food security across the country. In addition, currency instability and fragmented governance are undermining effective economic planning and inflation control.
As Libya remains gripped by political uncertainty and regional tensions, food insecurity is likely to worsen unless urgent measures are taken to stabilise markets and restore supply chains. Tags: libyaLibyan CrisistripoliWFP
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