FX.co ★ Palestine Deflation Eases in August

Consumer prices in Palestine fell 34.25% year-on-year in August 2026, easing from the record 43.19% drop recorded in July. The pace of decline moderated in the Gaza Strip, where prices fell 58.39% compared with 66.27% a month earlier, while inflation strengthened in both Jerusalem (3.30% vs 1.90%) and the West Bank (3.27% vs 1.67%).

On a monthly basis, the consumer price index (CPI) inched up 0.09% after a 1.68% decline in July. The slight increase was largely driven by strong rebounds in the prices of diesel (17.34% vs -3.12% in July), 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 road transport (3.40%), fresh chicken (1.99%), gas (1.66%), and petrol (1.14%).

These gains were partially offset by declines in the prices of dried vegetables (-2.34%), dried pulses (-2.33%), fresh meat (-2.00%), and fresh fruit (-1.77%).