Consumer prices in Palestine dropped by 36.96% year-on-year in May 2026, deepening from a 21.78% decline in April. This was the sharpest bout of consumer deflation since December 2025, with broad-based price falls across most key categories. Notable decreases were recorded in dried vegetables (-15.8%), fresh vegetables (-11.91%), cereal flour (-10.29%), fresh fruits (-8.32%), other sugar and sugar substitutes (-6.96%), potatoes and other tubers (-5.94%), diesel fuel for cars (-3.58%), vegetable oils (-3.57%), and rice (-1.81%).
At the level of major expenditure groups, deflation was evident in food and non-alcoholic beverages (-44.63%), housing and utilities (-50.95%), and transport (-9.89%). Regionally, the Gaza Strip saw a particularly sharp decline in prices of 59.96%, in contrast to increases of 2.69% in the West Bank and 3.21% in Jerusalem. On a monthly basis, consumer prices fell by 0.4% in May, reversing a 5.27% rise in April.
