FX.co ★ Palestine Inflation Rate Hits 6-Month High

In June 2025, consumer prices in Palestine soared by 57.41% compared to the previous year, up from 47.57% in May. This represents the most significant increase since December 2024, largely due to renewed Israeli military activities and access restrictions that have led to shortages of resources. The cost of food and non-alcoholic beverages surged dramatically (193.73% compared to 75.99% in May). In contrast, inflation eased in the housing and utilities sector (97.98% down from 136.72%), and prices for alcoholic beverages and tobacco plummeted (-35.38% from a prior 69.17%). On a monthly scale, the growth in consumer prices decelerated considerably to 3.45% in June from a 23.59% increase in May, with Gaza experiencing a notable rise of 5.54%. The primary contributors to this upward trend were accelerated price increases in dried vegetables (+134.35%), various sugar and sugar substitutes (+116.26%), potatoes (+106.26%), fresh fruits (+59.55%), fresh vegetables (+29.26%), coffee (+23.40%), and rice (+12.05%).