Rising inflation deepens economic pressures in Israeli entity amid regional conflicts

QUDS, April 30 (YPA) – The Israeli occupation’s economy is facing a marked acceleration in inflationary pressures, driven by the economic fallout of ongoing wars and regional tensions, alongside simultaneous increases in fuel, food, and housing costs.

Beginning at midnight Thursday-Friday, the price of a liter of 95-octane gasoline is expected to rise to 8.07 shekels, extending a series of increases that have pushed fuel prices above the 8-shekel threshold for the first time in years and reflecting volatility in global energy markets.

According to economic estimates, the increase is likely to be reflected in Israeli entity’s April Consumer Price Index, which is projected to rise between 1.3% and 1.5%. Annual inflation is also expected to climb to between 2.1% and 2.3%, potentially prompting the Bank of the occupation to maintain current interest rates at its next policy meeting.

Meanwhile, food prices continue to face upward pressure, particularly in agricultural and dairy products, amid reduced imports, higher production costs, and announced price hikes by major food manufacturers.

In addition, rental costs are forecast to increase by as much as 6% in the coming months, driven by stronger demand and tightening supply, further intensifying cost-of-living burdens, especially for lower-income households.

These developments come amid the continuing economic impact of conflicts spanning Gaza, Lebanon, the Red Sea, and tensions involving Iran, all of which have disrupted supply chains, transportation costs, and production activity.

Overall, the latest indicators highlight mounting economic challenges for Israel, with persistent inflation, weakening purchasing power, and a broader climate of security and financial uncertainty.

AA