Prices Rise, Rarely Fall

Prices in Palestine rise quickly when the dollar strengthens, but fall slowly—or not at all—when it weakens. This is due to the “asymmetric exchange-rate pass-through,” the absence of a national currency, and heavy reliance on imports. Experts attribute this to inventories and purchase contracts arranged at higher exchange rates, shipments that can take four to six months to arrive, weak competition, concentrated supply, inadequate oversight, and high operating costs. In the West Bank, the consumer price index fell by just 0.11% in 2025, even though the dollar’s average value declined by 6.7% to around 3.45 shekels. In Gaza, meanwhile, the annual rise in prices reached 21.93%, driven by supply disruptions and restrictions at border crossings. Experts called for stronger competition and oversight, and for the publication of data comparing import costs with retail prices, to ensure that lower costs are passed on to consumers.

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