Monthly Consumer Price Index

One of the strategies form the beginning of the Israeli occupation has been to integrate the Occupied Palestinian Territories (OPT) according to Israel's economic, land and water interests. Thus, the OPT faced a policy which aimed at freezing any economic development, preventing independent economic growth and creating a situation of complete Palestinian dependence on Israel. The OPT became a supplementary market for Israeli goods and services and a source of cheap labor for the Israeli economy. This situation has forced thousands of Palestinians to emigrate and to seek employment in the Arab World. This situation has forced thousands of Palestinians to emigrate and to seek employment in the Arab World or the West (the group most likely to emigrate are non-camp residents, the middle class, mainly Christians and urban dwellers).

Particularly significant during the Intifada was the growth of the popular or informal economy, a wide range of initiatives in small-scale industry, agriculture, crafts and services, linked to popular political and social movements. It included production projects of "grassroots" organization and household economy cooperatives, aiming at strengthening the more marginal elements of the population, to facilitate equitable distribution of resources, including profit-sharing, participation of women, developing human resources, and meeting the development needs of the community.

Precise parameters of Palestinian economic activity were outlined in an economic agreement signed by Israel and the PLO in Paris on April 29, 1994 . A major role will be played by the donor countries whose input will provide the financial foundation for the reconstruction and development of the Palestinian economy.

Due to the ongoing closure imposed on the OPT by Israel since march 1993, the Palestinian economy is losing $600,000 million a Year (UN estimates, 1995). The closure meant the loss of tens of thousands of jobs that could not be recreated domestically. The return of thousands of Palestinians from exile/diaspora to the homeland has aggravated this situation.

The following are somes statistics about the Palestinian Economy as compiled by the Palestinian Central Bureau of Statistics (PCBS):

Gross Domestic Product
by Economic Activity in West Bank and Gaza Strip at Current Prices
(in million US $) 1994

Economic Activities	Gross Value Added	Intermediate Consumption	Output
Industries	2430.85	1942.44	4373.29
Agriculture and Fishing	408.06	171.09	579.15
Mining, Manufacturing, Electricity and Water	417.35	624.66	1042.01
Mining and Quarrying	15.01	14.06	29.07
Manufacturing	380.36	588.32	968.68
Electricity & Water Supply	21.98	22.28	44.26
Construction	270.06	686.62	951.39
Wholesale & Retail Trade	459.02	137.08	596.10
Transport	217.38	178.22	395.60
Financial Intermediation	62.27	13.58	75.85
Services	596.71	140.51	737.22
Real Estate and Business Services	517.27	64.07	581.34
Community, Social & Personal Services	17.18	9.09	26.27
Hotels & Restaurants	31.13	47.32	78.45
Education	11.15	6.35	17.50
Health & Social Work	19.98	13.68	33.66
Producers of Government Services	369.12	303.12	672.24
Producers of Private Non-Profit	170.08	49.86	219.94
Services to Households
Private households with employed persons	0.79	0.00	0.79
Less: FISIM	-15.61	15.61	0.00
Plus: Customs Duties	--	--	--
Plus: VAT on Imports, Net	20.00	0.00	20.00
Total	2975.23	2311.03	5286.26
Gross Domestic Product	2975.23

Gross National Income and GDP and GNI Per Capita
by Region at Current Prices 1994

Region	GNI per Capita (US $)	GDP per Capita (US $)	GNI (million US $)**	Compensation of Employees from Abroad (million US $)*	GDP (million US $)
West Bank & Gaza Strip	1,577.83	1,329.40	3,531.23	556.00	2,975.23
Remaining West Bank & Gaza Strip	1,503.15	1,274.29	3,095.89	471.36	2,624.53
Jerusalem	2,439.92	1,965.54	435.34	84.64	350.70
Remaining West Bank	1,739.01	1,409.53	2,116.43	400.99	1,715.44
Gaza Strip	1,162.46	1,078.94	979.46	70.37	909.09

* Employees only in Israel
** Does not include net property income

MONTHLY CONSUMER PRICE INDEX NUMBERS
BY MAJOR GROUPS (BASE YEAR 1996=100)

	Palestinian Teritories
Major groups	Mar.1996	Feb.1997	Mar.1997
Food	105.77	108.06	106.30
Beverages and Tobacco	98.04	106.41	107.13
Textiles, clothing and footwear	96.82	108.31	109.98
Housing	99.46	103.32	104.59
Furniture, household goods & services	95.56	106.42	107.68
Transport and communications	101.05	104.01	103.74
Education	97.29	103.08	104.50
Medical care	97.32	105.67	108.51
Recreational and cultural goods & services	90.75	102.96	103.55
Miscellaneous goods and services	99.21	103.50	104.41
All-Items consumer price index	101.24	106.35	106.25

	Jerusalem
Major groups	Mar.1996	Feb.1997	Mar.1997
Food	105.76	107.21	107.14
Beverages and Tobacco	97.24	103.75	107.44
Textiles, clothing and footwear	96.19	106.84	109.56
Housing	100.20	101.92	101.47
Furniture, household goods & services	98.16	105.96	107.75
Transport and communications	97.65	103.20	101.71
Education	97.61	101.52	103.67
Medical care	99.03	104.54	105.89
Recreational and cultural goods & services	99.05	102.46	103.20
Miscellaneous goods and services	99.40	100.58	101.63
All-Items consumer price index	100.99	104.98	105.53

	West Bank
Major groups	Mar.1996	Feb.1997	Mar.1997
Food	107.07	110.60	107.63
Beverages and Tobacco	98.79	106.96	106.56
Textiles, clothing and footwear	102.22	104.18	105.75
Housing	99.67	103.06	105.44
Furniture, household goods & services	98.44	106.58	107.78
Transport and communications	104.13	105.06	105.86
Education	98.38	101.34	102.16
Medical care	96.20	108.11	113.08
Recreational and cultural goods & services	98.90	102.83	102.95
Miscellaneous goods and services	100.01	104.70	105.41
All-Items consumer price index	103.10	107.26	106.86

	Gaza Strip
Major groups	Mar.1996	Feb.1997	Mar.1997
Food	103.54	110.60	107.41
Beverages and Tobacco	97.99	108.79	108.69
Textiles, clothing and footwear	95.90	115.12	115.79
Housing	98.94	102.12	105.02
Furniture, household goods & services	98.10	106.29	110.81
Transport and communications	101.65	102.65	103.79
Education	96.61	103.30	103.60
Medical care	100.11	106.20	109.95
Recreational and cultural goods & services	97.62	105.30	105.68
Miscellaneous goods and services	98.33	107.51	110.00
All-Items consumer price index	100.73	108.33	108.04

Monthly Consumer Price Index Numbers
by Major Groups (base month 11/95=100)
For Months of October - December

	All Items Index
Major groups	Oct. 1996	Nov. 1996	Dec. 1996
Food	109.64	108.20	107.36
Beverages and Tobacco	109.65	110.03	111.04
Textiles, clothing and footwear	107.38	106.71	109.55
Housing	103.48	105.77	103.96
Furniture, household goods & services	106.32	106.50	108.76
Transport and communications	108.35	109.02	108.73
Education	108.22	107.73	107.64
Medical care	111.60	111.50	112.44
Recreational and cultural goods & services	101.43	100.99	103.29
Miscellaneous goods and services	105.37	106.29	107.48
All-Items consumer price index	108.27	107.90	107.04

	Jerusalem
Major groups	Oct. 1996	Nov. 1996	Dec. 1996
Food	109.99	108.19	107.30
Beverages and Tobacco	112.55	112.89	112.89
Textiles, clothing and footwear	106.30	106.46	106.64
Housing	101.05	102.23	101.05
Furniture, household goods & services	104.83	105.10	106.64
Transport and communications	105.76	105.02	104.70
Education	102.95	102.46	102.47
Medical care	105.89	104.96	104.80
Recreational and cultural goods & services	101.93	101.85	103.14
Miscellaneous goods and services	102.88	103.28	103.36
All-Items consumer price index	107.13	106.39	106.09

	West Bank
Major groups	Oct. 1996	Nov. 1996	Dec. 1996
Food	109.39	109.16	108.62
Beverages and Tobacco	108.46	108.48	108.79
Textiles, clothing and footwear	109.24	108.11	108.14
Housing	106.98	107.68	105.28
Furniture, household goods & services	104.87	104.21	106.94
Transport and communications	108.91	110.02	109.84
Education	106.61	106.53	106.46
Medical care	116.44	116.54	118.45
Recreational and cultural goods & services	101.18	100.79	100.59
Miscellaneous goods and services	104.85	105.79	108.96
All-Items consumer price index	108.58	108.55	108.65

	Gaza Strip
Major groups	Oct. 1996	Nov. 1996	Dec. 1996
Food	111.61	111.30	111.45
Beverages and Tobacco	107.35	107.64	110.18
Textiles, clothing and footwear	109.92	108.56	114.47
Housing	102.30	105.88	105.39
Furniture, household goods & services	106.73	107.76	109.98
Transport and communications	106.45	107.38	107.42
Education	109.48	108.33	108.35
Medical care	106.01	107.38	107.58
Recreational and cultural goods & services	101.51	100.41	103.44
Miscellaneous goods and services	108.33	109.39	111.68
All-Items consumer price index	108.88	109.13	110.18

Gross Domestic Product by Economic Activity in West Bank and Gaza Strip at Current Prices (in million US $) 1994

Gross National Income and GDP and GNI Per Capita by Region at Current Prices 1994

* Employees only in Israel ** Does not include net property income

MONTHLY CONSUMER PRICE INDEX NUMBERS BY MAJOR GROUPS (BASE YEAR 1996=100)