Rising Prices and Their Impact on the Poverty Line in Libya: An Analytical Study for the Period 2024-2026

Abstract

This research examines the phenomenon of rising prices and its repercussions on the poverty line in Libya during the period 2024-2026. This period witnessed fundamental transformations in the Libyan economy, characterized by declining oil revenues, a devaluation of the Libyan dinar due to the currency devaluation policies implemented by the Central Bank of Libya in April 2025 and January 2026, the continuous rise in prices of imported food commodities, and the direct impact of political instability on economic performance and living standards. The research focuses on analyzing the gap between the officially reported inflation rate, which reached approximately 2.1% in 2024, and the actual reality of the cost-of-living pressures faced by Libyan families. This analysis relies on data and reports issued by the World Food Programme, the International Monetary Fund, and the World Bank. The research also aims to measure the impact of rising prices on the purchasing power of individuals and families and to identify its repercussions on the social groups most vulnerable to economic changes.The study concluded that the actual rise in the cost of living far exceeded that reflected in official inflation rates. The cost of a basic household's spending basket in Libya increased by 27.7% in one year, reaching approximately 1,128 dinars per month in February 2026. This suggests a potential widening of the actual poverty gap and a decline in purchasing power, despite the relatively low official inflation rate. The research offers a set of recommendations and proposed policies aimed at improving the accuracy of inflation measurement, supporting vulnerable groups, and achieving greater economic and social stability