Cost of Living Jumps 10.5% in Palestine in 2025

SadaNews: The cost of living index recorded a sharp increase in Palestine in 2025 compared to 2024, driven by price levels unprecedented in the Gaza Strip, as a result of the Israeli aggression on Gaza since October 7, 2023. Consumer goods prices surged by 21.93% in the Gaza Strip, and by 1.64% in Jerusalem J1*, while the index recorded a decrease of 0.11% in the West Bank.

Cost of Living Index in 2025 in Palestine

The consumer price index in Palestine sharply increased by 10.54%. The primary reason for the rise in the cost of living index in Palestine during 2025 is the significant rise in prices of housing, water, electricity, gas, and other fuels by 84.09%, which holds a relative importance of 9.06% in the consumer basket, with gas prices soaring by 297.58%.

Food and non-alcoholic beverage prices also increased by 35.89%, holding a relative importance of 28.15% in the consumer basket, with prices of sugar rising by 125.82%, eggs by 109.72%, dried vegetables by 107.18%, "kamaj" bread by 64.32%, white flour by 43.44%, fresh fruits by 42.62%, coffee by 40.49%, canned vegetables by 37.22%, vegetable oils by 30.63%, fresh chicken by 29.69%, fresh meat by 23.08%, fresh vegetables by 18.99%, dried legumes by 18.48%, and potatoes by 15.21%.

The transportation sector recorded a rise of 5.13%, holding a relative importance of 14.26% in the consumer basket, with gasoline prices increasing by 15.86%.

Cost of Living Index Since 1996

The cost of living has increased by approximately 284% from 1996 to 2025, equivalent to an increase of 2,841 shekels for every 1,000 shekels. If calculated from 2004, it reached around 172%, which is an increase of 1,721 shekels for every 1,000 shekels. It is noteworthy that income erosion has reached around 147% from 2008 to 2025 due to successive price rises over the past years.

Cost of Living Index in 2025 by Palestinian Regions

21.93% increase in the cost of living index in the Gaza Strip in 2025 compared to 2024
This increase was primarily due to the rise in prices of housing, water, electricity, gas, and other fuels by 212.25%, with gas prices increasing by 427.95%.
Food and non-alcoholic beverage prices also recorded a rise of 71.01%, with bread prices increasing by 325.71%, sugar by 162.04%, eggs by 137.68%, dried vegetables by 125.79%, coffee by 109.73%, canned vegetables by 91.63%, mineral water by 87.75%, fresh fruits by 64.08%, fresh chicken by 61.42%, vegetable oils by 56.26%, white flour by 52.50%, fresh meat by 48.23%, fresh vegetables by 39.00%, potatoes by 31.46%, and dried legumes by 27.06%.

The transportation sector recorded an increase of 15.13%, with gasoline prices rising by 32.26% and diesel prices by 30.48%.

1.64% increase in the cost of living index in Jerusalem J1* in 2025 compared to 2024

This increase was primarily due to the rise in prices of food and non-alcoholic beverages by 1.31%, with fresh meat prices increasing by 14.64%, fresh fruits by 9.12%, white flour by 7.00%, coffee by 6.50%, vegetable oils by 3.58%, and rice by 1.09%.

Prices of alcoholic beverages and tobacco increased by 14.11%, with imported cigarette prices rising by 14.35%. Prices for housing, water, electricity, gas, and other fuels increased by 0.49%, with gas prices rising by 5.03%.

0.11% decrease in the cost of living index in the West Bank in 2025 compared to 2024

This decrease is attributed to a reduction in prices of food and non-alcoholic beverages by 1.82%, with prices of potatoes falling by 36.64%, dried vegetables by 27.78%, fresh vegetables by 15.23%, sugar by 10.41%, fresh chicken by 10.31%, and white flour by 1.53%.

Meanwhile, prices of alcoholic beverages and tobacco recorded an increase of 5.12%, with imported cigarette prices rising by 5.99%.