Palestine CPI Slides 43% in July

Consumer prices in Palestine fell 34.25% year-on-year in August 2026, easing from a 43.19% decline in the previous month, which marked the steepest drop on record. Prices fell at a slower pace in the Gaza Strip (58.39% vs 66.27% in July), while inflation accelerated in Jerusalem (3.30% vs 1.90%) and the West Bank (3.27% vs 1.67%). On a monthly basis, the CPI edged up 0.09%, following a 1.68% decline in July. The monthly increase was driven by sharp rebounds in the prices of diesel (17.34% vs -3.12%), fresh vegetables (10.17% vs -5.19%), and eggs (6.21% vs -8.20%). Additional upward pressure came from higher prices for potatoes and other tubers (5.42%), passenger transport by road (3.40%), fresh chicken (1.99%), gas (1.66%), and petrol (1.14%). Meanwhile, prices decreased for dried vegetables (-2.34%), dried pulses (-2.33%), fresh meat (-2.00%), and fresh fruit (-1.77%).

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%).