Price rise endangers Palestine economy

Consumer record prices in Palestine rose by 0.41 percent during July 2012 in comparison to last month, as the general consumer record price reached 134.93 against 134.8 last month while prices rose by 1.97 percent in comparison to July 2011. According to a report issued by the Central Statistics Agency in mid August, the rising prices of some food and beverages, restaurants, cafes and hotel services, cultural and entertainment goods and services, furniture, linens and home products are the main reason for higher costs in Palestinian territories despite the decreasing prices of cloth, garments, footwear, transportation, apartments and related needs. The price of other goods slightly fluctuated in comparison to last month. Prices in the West Bank rose by 0.52 percent during July mainly as a result of the increased prices of food and beverages by 1.32 percent, cultural and entertainment goods and services by 0.62 percent, the restaurant, cafe and hotel services group by 0.48 percent despite the low prices of the cloth, garments and footwear group by 1.21 percent and transportation by 0.50 percent. In Jerusalem prices rose by 0.18 percent as food and beverage prices rose by 0.44 percent, medical service by 0.84 percent, restaurant, cafe and hotel services by 0.72 percent, while the prices of furniture, linens and home products decreased by 0.41 percent and apartments and related needs by 0.33 percent. Prices in the Gaza Strip also recorded a slight increase by 0.6 percent resulting from increase in the prices of the furniture, linens and home products by 1.25 percent, the cultural and entertainment goods and services group by 0.15 percent, food and beverages by 0.12 percent, despite the decrease in prices for the apartments and related needs groups by 0.49 percent. Medical services rose by 0.91 percent and the cloth, garments, footwear group by 0.28 percent.