RIYADH: Syria’s annual inflation rate plummeted to 6.4 percent in January, down from 118.9 percent in the same month last year, driven by an improved local supply chain.

According to the latest Directorate of Economic Research, General Statistics, and Planning report at the Central Bank of Syria, the overall inflation rate from February 2024 to January 2025 stood at 46.7 percent.

The analysis attributed the decline to an improvement in the exchange rate following the liberalization process and a notable increase in the supply of goods and materials in the local market, significantly easing inflationary pressures.

On Dec. 8, Syrian President Bashar Assad was ousted, ending over five decades of family rule. Since then, Syria’s new leadership has focused on rebuilding and reviving the economy, with the EU easing sanctions to support reconstruction. Still, 90 percent of Syrians live in poverty, according to a recent UN report.

Syria’s monthly inflation rate for January stood at 8.7 percent, an improvement from the 13.8 percent rate recorded in December. This progress was similarly driven by reduced inflationary pressures due to the increase in supply and exchange rate stability.

The report also highlighted sectoral developments, showing mixed trends across different categories. Food prices generally declined, with the overall index dropping 12.5 percent in February. Dairy and eggs decreased by 3.4 percent, followed by oils, which fell by 14.5 percent, and vegetables, which saw a decline of 18 percent. Meat was the only category to rise, increasing by 17.6 percent.

On Feb. 24, Syria’s economy minister met with the Middle East director of the World Bank and discussed resuming cooperation with the lender, which was suspended under the toppled government of Assad.

Minister Bassel Abdel Hanan emphasized with Jean-Christophe Carret the resumption of relations between the bank and Syria as well as the prospects for their development, the official SANA news agency reported. 

Abdel Hanan proposed the establishment of a “joint committee between the ministry and the bank to evaluate a new start.” He added that “the nature of the financing granted by the bank will determine the type of projects that will be financed,” pointing to the energy, agriculture, industry, and infrastructure sectors.

The World Bank had provided Syria with technical assistance and development advice before suspending its operations following the outbreak of the civil war in 2011. Since Assad’s fall, Syria has been urging the international community to lift the sanctions imposed on the former government.

Syrian Foreign Minister Asaad Al-Shaibani called the EU’s decision to ease sanctions on the energy, transport, and banking sectors “a step toward alleviating the suffering of our people.”