your project consists of two parts:
– Part one consists of making a comparison between the rate of inflation in the CPI (consumer price index and the rate of currency devaluation between the USD and the LBP for the period going from September 2019 and November 2020.
you need to monitor the inflation rate in the products that are mostly used by the domestic household as specified by the ministry of economy and the rate of currency devaluation in LBP.
you need to conclude per product category that is: meat, poultry, vegetables, energy, grains, cleaning products, oils, paper products, ….. whether the price increase was proportionate to the LBP devaluation rate, higher or lower?
you need to conclude if the price of the basket of consumer goods witnessed inflation when priced in USD or deflation?
all data needed are on www.economy.gov.lb, you do not need to search elsewhere!
just gather the info pertaining to the CPI basket, make your analysis per product category then come up with your conclusions.
– part two: try to link the devaluation of the currency to the level of M1 (currency in circulation at the central bank www.bdl.gov.lb.
try to investigate if there is a correlation between the level of currency in circulation and the level of the LBP devaluation.
your paper should be around 12 pages; all information needed is posted on www.economy.gov.lb that is the ministry of economy and www.bdl.gov.lb which is the central bank of Lebanon
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