logo
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
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Libya's Central Bank Reports Total Revenues of 73.5 Billion Dinars
Libya's Central Bank Reports Total Revenues of 73.5 Billion Dinars

Libya Review

timea day ago

  • Libya Review

Libya's Central Bank Reports Total Revenues of 73.5 Billion Dinars

The Central Bank of Libya (CBL) has released its monthly statement on public revenues and expenditures for the period from 1 January to 31 July 2025, showing total revenues of 73.5 billion Libyan dinars and total spending of 66.1 billion dinars. According to the report, oil-related income dominated state revenues, with 60.9 billion dinars from crude oil sales and 10.9 billion dinars from oil royalties. Non-oil revenues included one billion dinars from taxes, 135 million dinars from customs duties, and 45.8 million dinars from telecommunications. Other miscellaneous revenues contributed a further 543 million dinars. On the expenditure side, the report indicated that salaries and wages under Chapter One accounted for 42.6 billion dinars. Operating expenses, classified under Chapter Two, amounted to 2.8 billion dinars. Development spending, listed in Chapter Three, reached 147.6 million dinars. Subsidies under Chapter Four totalled 20.6 billion dinars. The emergency fund, Chapter Five, recorded no spending during the period. The CBL noted that the revenue and expenditure figures reflect the state's fiscal position in the first seven months of the year. This includes subsidies, overseas student grants, family allowances for spouses and children, and fuel subsidies. The bank's monthly financial disclosure is part of efforts to promote transparency and provide public access to the government's fiscal performance. The figures also highlight Libya's heavy reliance on oil revenues and the significant share of the budget allocated to subsidies and wages. The report comes amid continued economic challenges and calls for reforms to diversify revenue sources and enhance spending efficiency. Tags: cblCentral BankGPDlibyarevenues

Ankara Confirms Offshore Energy Plans in Libya
Ankara Confirms Offshore Energy Plans in Libya

Libya Review

timea day ago

  • Libya Review

Ankara Confirms Offshore Energy Plans in Libya

Turkey will soon launch seismic surveys in Libya's territorial waters as part of its expanded offshore energy exploration strategy, the country's Energy and Natural Resources Minister Alparslan Bayraktar told Sky News Arabia. Bayraktar said the move is in line with Ankara's policy of seeking energy opportunities abroad, noting that Turkish survey and drilling vessels will also operate in Somalia's territorial waters to begin oil and gas exploration there. The decision to enter Libyan waters comes against the backdrop of long-standing maritime disputes in the eastern Mediterranean involving Libya, Turkey, and Greece. These tensions escalated after a 2019 maritime boundary agreement between Ankara and Libya's Tripoli-based Government of National Accord, which Athens condemned as violating its sovereign rights. Greece argues that the accord disregards its island territories and contravenes international maritime law, while Turkey maintains it is legitimate and protects both nations' economic interests. The disagreement has led to overlapping claims over exclusive economic zones and drilling rights in waters believed to contain significant hydrocarbon reserves. Turkey's presence in Libya's maritime zones has been further complicated by broader geopolitical rivalries in the Mediterranean, with several EU countries backing Greece's position. Despite periodic talks, the dispute remains unresolved, raising the risk of diplomatic or naval confrontations. Bayraktar's announcement signals Ankara's intention to press ahead with energy projects in contested areas, potentially adding a new layer of complexity to the already fraught relations between the three countries. Analysts say the move could strengthen Turkey's influence in North Africa and the Mediterranean but may also trigger renewed opposition from Athens and its European allies. Tags: CreteGreecelibyaMediterraneanTurkey

Libya & UK Discuss Lifting Flight Ban
Libya & UK Discuss Lifting Flight Ban

Libya Review

time2 days ago

  • Libya Review

Libya & UK Discuss Lifting Flight Ban

Libya's Director of European Affairs at the Ministry of Foreign Affairs and International Cooperation, Abu Bakr Ibrahim Al-Tawil, met on Monday with Owen Jenkins, the UK Foreign, Commonwealth & Development Office's Director General for the Indo-Pacific, Middle East, and North Africa, at the ministry's headquarters in Tripoli. The discussions focused on strengthening bilateral relations and expanding cooperation across various fields to serve the mutual interests of both nations. Al-Tawil stressed the deep ties between Libya and the United Kingdom, praising London's role in supporting the Libyan political process. Jenkins commended the efforts of Libya's Government of National Unity in promoting stability and comprehensive development, expressing the UK's keenness to broaden areas of collaboration. The meeting also addressed the possibility of resuming consular services at the British Embassy in Tripoli to facilitate visa issuance for Libyan citizens. Both sides discussed ongoing efforts to lift the ban on Libyan civil aviation, with Jenkins confirming that UK authorities are working diligently towards this goal. In addition, the talks reviewed the outcomes of the recent visit by Britain's Minister of State for the Middle East and North Africa, Hamish Falconer, to Libya, which resulted in several understandings aimed at enhancing bilateral cooperation. Libya has been in chaos since a NATO-backed uprising toppled longtime leader Muammar Gaddafi in 2011. The county has for years been split between rival administrations. Libya's economy, heavily reliant on oil, has suffered due to the ongoing conflict. The instability has led to fluctuations in oil production and prices, impacting the global oil market and Libya's economy. The conflict has led to a significant humanitarian crisis in Libya, with thousands of people killed, and many more displaced. Migrants and refugees using Libya as a transit point to Europe have also faced dire conditions. The planned elections for December 2021 were delayed due to disagreements over election laws and the eligibility of certain candidates. This delay has raised concerns about the feasibility of a peaceful political transition. Despite the ceasefire, security remains a significant concern with sporadic fighting and the presence of mercenaries and foreign fighters. The unification of the military and the removal of foreign forces are crucial challenges. Tags: aviationlibyatripoliUK

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store