A Multi-Criteria Decision-Making Model for Prioritizing the Causes of Inflation in Libya Using the Best-Worst Method and Analytic Hierarchy Process

Inflation remains one of the most persistent and destabilizing economicchallenges facing Libya, affecting purchasing power, investment, and overalleconomic stability. Understanding its root causes is essential for designingeffective and targeted policy interventions. This study investigates the maindrivers of inflation in Libya by applying a hybrid Multi-Criteria Decision-Making (MCDM) approach that combines the Best-Worst Method (BWM) andthe Analytic Hierarchy Process (AHP). Eight critical inflation-related factorswere identified through expert consultations and economic literature,including structural, monetary, and institutional elements. The BWM was firstused to determine initial weight coefficients by comparing the most and leastinfluential factors, followed by the AHP to conduct comprehensive pairwisecomparisons. The final weights were derived by aggregating the results fromboth methods to ensure robustness and consistency. The findings indicatethat weak domestic production and political instability are the mostsignificant contributors to inflation in Libya, followed by currencydevaluation and monetary expansion. These results emphasize the need forintegrated policy responses that not only address monetary dynamics but alsoconfront deeper structural constraints. The study offers a transparent andreplicable framework for inflation analysis and contributes to more informedand context-specific economic policymaking in fragile and transitionaleconomies.