FX.co ★ Palestine Consumer Prices Jump 47.6% in May

In May 2025, Palestine saw a significant rise in consumer prices, escalating by 47.57% compared to the previous year. This represents the most substantial increase in five months and a pronounced jump from the 35.77% recorded in April. The dramatic upswing is largely attributed to skyrocketing inflation in the Gaza Strip, where the Consumer Price Index (CPI) surged by 101.42%. This sharp increase was influenced by renewed Israeli military operations and stringent restrictions on commercial truck access at border crossings, which greatly hindered the availability of essential goods. The most notable price hikes were observed in the categories of food and non-alcoholic beverages, which rose by 75.99% compared to April's 37.69%, alcoholic beverages, tobacco, and narcotics, which increased by 69.17% versus 62.07%, and housing and utilities, which experienced an upsurge of 136.72%, though slightly lower than April's 175.84%. On a month-to-month basis, consumer prices climbed by 23.59% in May. Gaza, in particular, experienced a 43.21% monthly rise, driven by dramatic cost increases for white flour (+311.94%), dried vegetables (+159.97%), other sugar and sugar substitutes (+147.71%), eggs (+121.20%), imported cigarettes (+79.15%), and vegetable oil (+67.27%).