Economic indices paint gloomy future for Palestine
The latest economic reports from the Palestinian Central Bureau of Statistics indicate a rise of prices, which may lead to inflation.
The Palestinian Central Bureau of Statistics (PCBS) indicated in a May 14 press release that during April 2017, the Palestinian consumer price index (CPI) "increased by 0.86% compared with April 2016.”
The PCBS noted that the overall wholesale price index (WPI) in Palestine registered a 0.39% rise during the first quarter of 2017 compared to the fourth quarter of 2016. WPI for local products increased by 1.35% compared with the fourth quarter 2016, while agricultural commodities increased by 2.58%, vegetables and dried fruits increased by 5.91% and animal products increased by 4.39% .
It should be noted that 2016 witnessed a 2.67% rise in WPI for local products compared to 2015. Also in 2014, the price index rose by 0.84% compared to the previous year. Concerns have grown that the Palestinian economy will see a record rise in commodity prices even as Palestinian wages remain low.
Maher Tabbaa, the director of public relations and media at the Gaza Chamber of Commerce and Industry, told Al-Monitor, “The rise in WPI and CPI in Palestine is dangerous to the Palestinian economy, as these indices have significantly inflated in recent years, which would worsen the financial burden borne by citizens. The inflation index is registering a record rise for the basket of consumer goods, on which citizens spend more than 86.9% of their monthly wages.”
