Palestine CPI Plunges 40% in June

Consumer prices in Palestine fell 43.19% year-on-year in July 2026, deepening from a 40.04% decline in June and marking another sharp drop in consumer prices. The continued year-on-year decline largely reflects the normalization of prices in Gaza following the exceptionally high price levels recorded previously. Prices in the Gaza Strip plunged 66.27%, while prices increased 1.90% in Jerusalem J1 and 1.67% in the West Bank. On a monthly basis, the CPI fell 1.68% in July, compared with a 1.6% decline in June. The monthly drop was driven by lower prices for eggs (-8.20%), fresh vegetables (-5.19%), petrol (-4.11%), diesel (-3.12%), fresh fruit (-2.41%), gas (-2.10%), fresh chicken (-1.61%), and vegetable oils (-1.40%).

Consumer prices in Palestine plunged 40.04% year-on-year in June 2026, deepening from a 36.96% decline in May and marking the sharpest deflation since December last year. Across the territories, consumer prices fell 62.77% in the Gaza Strip, while inflation remained positive in the West Bank (1.31%) and Jerusalem (2.31%). The sharp decline continued to reflect the normalization of prices in Gaza following the exceptionally high levels recorded during the previous two years. On a monthly basis, consumer prices fell 1.6% in June, following a 0.4% decline in May. This was driven by broad-based declines in gas (-67.31%), eggs (-25.04%), fresh vegetables (-14.75%), fresh chicken (-11.72%), potatoes and other tubers (-9.82%), dried vegetables (-9.58%), fresh fruit (-7.39%), diesel fuel (-7.19%), rice (-1.62%), and vegetable oils (-1.05%).

Consumer prices in Palestine plunged by 36.96% year-on-year in May 2026, extending the decline from a 21.78% fall in the previous month. It marked the sharpest consumer deflation since December 2025, as prices fell across most key items, namely dried vegetables (-15.8%), fresh vegetables (-11.91%), flour of cereals (-10.29%), fresh fruits (-8.32%), other sugar and sugar substitutes (-6.96%), potatoes and other tubers (-5.94%), liquid fuel for cars, diesel (-3.58%), vegetable oils (-3.57%), and rice (-1.81%). Among major groups, deflation was recorded in food and non-alcoholic beverages (-44.63%), housing and utilities (-50.95%), and transport (-9.89%). Across the territories, the Gaza Strip recorded a steep 59.96% decline, while prices rose by 2.69% in the West Bank and 3.21% in Jerusalem. On a monthly basis, consumer prices fell 0.4%, reversing a 5.27% increase in April.