A Decline in Product Prices in Palestine During September 2025

SadaNews - Decline in Product Prices during September 2025

The general Producer Price Index recorded a decrease of 2.56% during September 2025 compared to August 2025, as it reached 226.70 in September 2025 compared to 232.66 in August 2025 (base year 2019 = 100).

Producer Price Index for domestically consumed goods during September 2025

The Producer Price Index for domestically consumed goods from local production recorded a decrease of 2.70%, reaching 237.32 in September 2025 compared to 243.92 in August 2025 (base year 2019 = 100).

Producer Price Index for exported goods during September 2025

The Producer Price Index for exported goods from local production remained stable at 127.60 during September 2025 (base year 2019 = 100).

Product Price Movements within Main Activities during September 2025

Prices for goods produced from manufacturing activities, which represent a relative importance of 58.92% of the product basket, recorded a sharp decline of 7.28%, due to falling prices for goods produced in the following activities: production of grain mill products by 47.70%, production of vegetable and animal oils and fats by 6.73%, bakery products by 5.90%, meat processing and preservation by 1.93%, and prepared animal feed by 1.08%.

Water supply, sewage, and waste management and treatment services, which represent a relative importance of 1.50% of the product basket, recorded a decrease of 1.03% during September 2025.

Prices for goods produced from agriculture, forestry, and fishing activities, which represent a relative importance of 29.94% of the product basket, recorded a decline of 0.46%, resulting from falling prices in the cultivation of perennial crops by 14.55%, with average prices of: grapes 8.98 NIS/kg, peaches 5.82 NIS/kg, guavas 19.23 NIS/kg, and green thyme 14.12 NIS/kg, despite the increase in average prices of: avocados 3.15 NIS/kg, oranges 11.24 NIS/kg, lemons 28.72 NIS/kg, pomelos 16.78 NIS/kg, and pickled green olives 11.39 NIS/kg.

Prices within animal production activities recorded a decline of 2.70%, with average prices for: local lamb 41.92 NIS/kg, local goats 34.71 NIS/kg, and large live broilers 21.07 NIS/kg, despite the increase in average prices of local live calves 23.31 NIS/kg, and fresh eggs (size 2kg) 28.86 NIS/dozen.

Prices for goods within the cultivation of non-permanent crops increased by 6.92%, with average prices of: white cabbage 7.00 NIS/kg, cauliflower 7.98 NIS/kg, zucchini 14.87 NIS/kg, hot peppers 44.93 NIS/kg, sweet green peppers 12.30 NIS/kg, green beans 15.96 NIS/kg, and green onions with leaves 8.93 NIS/kg, despite the drop in average prices of: molokhia 5.31 NIS/kg, greenhouse tomatoes 20.82 NIS/kg, greenhouse cucumbers 5.81 NIS/kg, eggplant 6.69 NIS/kg, okra 63.95 NIS/kg, green beans 25.67 NIS/kg, dry garlic 73.96 NIS/kg, local dry onions 12.93 NIS/kg, and potatoes 7.31 NIS/kg.

Overall, price levels are experiencing sharp fluctuations between increases and decreases in the Gaza Strip, linked to developments of the Israeli aggression, and not resulting from changes due to the interaction of market factors, thus having a significant impact on the general price index for Palestinian territories. These data must be considered when interpreting the Producer Price Index and average prices, and given the specificity of this exceptional phase, the average prices in the Palestinian territories cannot be used due to the sharp variations in data regionally and their significant impact from price changes in the Gaza Strip.

Meanwhile, prices of products in the mining and quarrying industry, which represent a relative importance of 1.41% of the product basket, remained stable during September 2025.

Conversely, prices for the group of electricity, gas, steam, and air conditioning supplies, representing a relative importance of 8.23% of the product basket, increased by 1.67% during September 2025 compared to August 2025.

Note to data users:

1. The data collection process for agricultural commodities collected in the same reference month was completed for the West Bank, while the September 2025 data for the Gaza Strip were collected through direct phone communication by the project management with field researchers in the sector, recording prices for commodities of high relative importance in the Producer Price Index, due to the ongoing Israeli aggression against the Gaza Strip since October 7, 2023.

2. The data collection process for industrial commodities in the West Bank was completed for September 2025, while in the Gaza Strip, data for all industrial establishments were estimated due to the rapid Israeli escalation against various aspects of the community after October 7, 2023.

3. International recommendations were followed in estimating missing data, as mentioned in the price guide, and the Group Relative Method is one of the best methods for handling missing data, which involves estimating missing prices based on changes in prices of other sources for the same item. If an entire source is temporarily closed, all prices of that source are estimated based on changes in prices of sources that share the same items collected from that source.

4. The estimation at the higher level of aggregation was also used in the case of a complete subindex or higher group missing, leading back to the main groups constituting the index.