A staggering 34.70% collapse in the consumer price index rocked the Gaza Strip in November 2025, marking the second consecutive month of dramatic price declines since a ceasefire was announced and dragging the overall Palestinian index down by an unprecedented 15.45%. This sharp downturn, detailed in a recent report from the Central Bureau of Statistics, underscores an environment of extreme economic volatility driven not by conventional market forces but by external geopolitical pressures. While the figures might suggest relief for consumers, they instead paint a picture of a severely disrupted economy where the flow of goods and the ability to conduct commerce remain exceptionally fragile. The sheer scale of the price drop in Gaza stands in stark contrast to the relative stability observed in other Palestinian territories during the same period, highlighting a deepening economic fragmentation that complicates any single, unified analysis of the region’s financial health and stability.
Regional Disparities Highlight Economic Fragmentation
The profound economic divergence across Palestinian territories became glaringly evident in the November 2025 data, rendering the aggregated national index almost meaningless for understanding the on-the-ground reality for most residents. While Gaza experienced its dramatic price collapse, the West Bank saw its consumer price index dip by a mere 0.03%, and Jerusalem recorded a minor decrease of 0.63%. This disparity is even more pronounced when viewed through a year-over-year lens. Compared to November 2024, prices in Gaza have plummeted by an astonishing 65.09%. In contrast, the West Bank experienced a negligible 0.15% price decrease over the same twelve-month period, while Jerusalem actually saw a modest price increase of 1.94%. In light of these figures, the Central Bureau of Statistics issued a strong caution, emphasizing that Gaza’s volatile data so heavily skews the overall Palestinian index that it cannot be used to represent the average change in cost of living, urging analysts to consider each region’s data independently.
External Pressures as the Primary Driver
The extreme price fluctuations in Gaza were not the result of typical supply and demand dynamics but were explicitly linked to external factors beyond the control of the local market. The Bureau of Statistics report directly attributed the severe volatility to “developments in Israeli aggression and the flow of trade crossings,” indicating that the availability and cost of goods are overwhelmingly dictated by security conditions and access through border points. This situation is fundamentally different from that in the West Bank and Jerusalem, where slight price decreases were attributed to more conventional market trends, such as lower costs for fresh vegetables, fruits, eggs, and vehicle fuels like gasoline and diesel. The November data ultimately revealed an economic reality where standard indicators were insufficient; the price index reflected not a functioning market but the direct consequences of geopolitical maneuvering and logistical constraints that overshadowed all other economic activity.
