Palestinian economic indicators and inflation

Economic data from 2026 indicates shifting trends in Palestine’s financial and consumer sectors. Banking reports show a 5% decline in consumer loan facilities, which fell to approximately $1.3 billion by the end of the second quarter compared to $1.4 billion at the end of 2025. Conversely, credit facilities for the industry and mining sectors increased to roughly $696 million during the same period, while agriculture and livestock lending remained stable at $178 million. Analysts attribute these lending shifts to client needs and risk levels amidst economic instability and trade restrictions.

By September 2026, the consumer price index rose by 4.69% compared to August. This inflation was largely driven by an 11.36% price increase in the Gaza Strip, whereas the West Bank and Jerusalem saw much smaller rises of 0.53% and 0.44%, respectively. Significant price hikes were recorded for imported cigarettes, white flour, and fresh vegetables, alongside increases in education services and land passenger transport.