The Syrian Lira: The Main Driver of Price Increases
The report indicated that the sharp decline in the value of the Syrian Lira, which lost about 15% of its value, was the main driver behind the increase in the cost of basic goods and services in local currency. This decline effectively offset noticeable reductions in prices denominated in US dollars, exacerbating affordability challenges and weakening the purchasing power of Syrian households, despite some goods registering a decrease in their value when calculated in US dollars. Regionally, the costs of basic goods and services denominated in Syrian Lira increased by 9% in central and southern Syria, and by 8% in northeastern Syria, reflecting the strong impact of the currency's depreciation. In contrast, the relatively limited 5% decrease in the value of the Turkish Lira contributed to the stability or slight decrease in the costs of basic goods and services in northwestern Syria.
Significant Increases in Food and Non-Food Item Prices
The food component of the basic needs basket recorded significant increases in local currencies last May, with prices rising by 8.8% in Syrian Lira nationally, 7.8% in central and southern Syria, and 5.4% in the country's northeast, despite their value decreasing in US dollars. The non-food item component also saw significant increases in Syrian Lira, rising by 12.2% nationally, with an increase of 13.8% in central and southern Syria, and 7% in the northeast, despite the stability of US dollar prices.
Jump in Water and Gas Costs
The costs of water transportation by tankers saw significant increases in Syrian Lira, rising by 19% nationwide, with sharp increases of 40% in northeastern Syria, and 10% in the central and southern regions, despite their prices remaining stable in dollars. Furthermore, the average cost of refilling a 24-kilogram domestic gas cylinder rose to 144,726 Syrian Lira, an increase of 15.8% nationwide, despite the stability of dollar prices. Central and southern Syria recorded a 16% increase in the cost of refilling a gas cylinder, while the increase was 9.2% in the northeast.
Decline in Market Efficiency and Increasing Reliance on the Dollar
The report indicated that market efficiency and access to finance declined nationwide between February and May 2026, with 57% of vendors reporting at least one operational impediment. Rising supplier prices were the most prominent of these obstacles, with 47% of vendors stating it limited their ability to purchase inventory, while 62% of vendors reported financial barriers faced by consumers when purchasing basic goods. The report pointed to an increase in multi-currency market practices, particularly the growing reliance on the dollar, suggesting this reflects its use as a store of value amidst ongoing exchange rate fluctuations and upward price pressures within supply chains. These factors have contributed to increased restrictions on purchasing and operating conditions for actors in Syrian markets.
