Palestinian Consumer Prices Sink Further

Consumer prices in Palestine declined by 14.4% year-on-year in January 2026, easing from a sharp 42.9% drop in the previous month and marking the fourth consecutive month of a deflationary trend. Meanwhile, prices increased in Jerusalem (2.95%), and the West Bank (1.75%). Among key food items, prices increased for fresh vegetables (10.15%), fresh fruit (8.55%), potatoes and other tubers (8.12%), rice (4.9%), dried vegetables (3.2%), and bread (2.1%), alongside imported cigarettes (15.7%), and gas (2.3%). On a monthly basis, consumer prices climbed 1.11% in January, rebounding from a 3.76% decrease in the prior month.

Consumer prices in Palestine plunged by 42.90% year-on-year in December 2025, deepening from a 38.9% decline in November. This marked the steepest decline since records began in 1998, driven by a 70.74% collapse in prices in the Gaza Strip, extending the deflationary trend for a third consecutive month following the ceasefire. Meanwhile, prices increased in Jerusalem (+2.80%) and the West Bank (+1.05%). Among key food items, prices declined for eggs (-35.21%), white flour (-26.71%), dried vegetables (-21.61%), fresh chicken (-14.27%), and fresh meat (-6.45%), alongside lower fuel prices, with petrol down 17.40%. On a monthly basis, consumer prices fell by 3.76% in December, following a 15.45% drop in November, as a steep decline in Gaza (-11.54%) outweighed modest increases in Jerusalem (+0.56%) and the West Bank (+0.23%).

Consumer prices in Palestine plunged by 38.90% year-on-year in November 2025, deepening from a 17.08% decline in October. This marked the second month of deflation and steepest drop since records began in 1998, largely driven by the ceasefire announcement in the Gaza Strip. Prices fell across key categories, led by food and non-alcoholic beverages (-42.86%), transport (-1.12%), and miscellaneous goods and services (-2.86%). Declines were also recorded in alcoholic beverages, tobacco, and narcotics (-84.80%), clothing and footwear (-12.70%), housing and utilities (-1.81%), furnishings and household equipment (-5.82%), health (-0.29%), communication (-2.79%), recreation and culture (-3.11%), education (-1.81%), and personal care, social protection and miscellaneous goods & services (-2.35%). On a monthly basis, consumer prices dropped by 15.45% in November, moderating from a 23.04% fall in October.