Palestine Consumer Prices Fall at Slower Pace

Consumer prices in Palestine fell 1.45% year-on-year in October 2026, easing from a 25.18% decline in the previous month, marking seven consecutive months of annual deflation. Prices declined at a slower pace in the Gaza Strip (-6.4% vs. -46.43% in September), while inflation eased in Jerusalem J1 (2.54% vs. 2.83%) and the West Bank (2.48% vs. 3.34%). On a monthly basis, the CPI fell 1.36%, easing from a 4.69% increase in September, as price growth slowed in the Gaza Strip (4.11% vs. 11.36%) and Jerusalem J1 (0.07% vs. 0.44%), while prices declined in the West Bank (-0.67% vs. 0.53%). Among individual items, monthly price increases moderated for imported cigarettes (5.08% vs. 28.95%) and fresh vegetables (7.44% vs. 8.57%), while costs surged for dried vegetables (28.72%), potatoes and other tubers (25.32%), and flour of cereals or white flour (14.21%).

Consumer prices in Palestine fell 25.18% year-on-year in September 2026, following a 34.25% decline in the previous month. The overall drop was driven by a 46.43% plunge in the Gaza Strip, while prices continued to rise in the West Bank (+3.34%) and Jerusalem J1 (+2.83%). On a monthly basis, the CPI rose 4.69%, accelerating from a 0.09% increase in August. Prices surged 11.36% in the Gaza Strip, compared with increases of 0.53% in the West Bank and 0.44% in Jerusalem J1. The monthly increase was led by higher prices for imported cigarettes (+28.95%), white flour (+11.96%), and fresh vegetables (+8.57%). Additional upward pressure came from education services (+2.97%), passenger transport by road (+2.79%), and eggs (+1.24%).

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%).