Highlights:

Rising food and fuel prices have underscored the critical importance of accelerating economic growth and development in the Palestinian territories. Between January and April 2022, the food component of the Consumer Price Index (CPI) rose to some of its highest point in at least six years. The effects of such price shocks disproportionately harm the poorest households, which spend the largest share of their income on food. Moreover, the official CPI likely understates the effective inflation experienced by many Palestinian households, as its weights are most representative of the wealthiest 40 percent of the population.