Inflation Rate YOY - PS Economic Data | Sigmanomics
Palestine Inflation Rate YoY
Latest Release
-14.4
Actual
-30
Consensus
-42.9
Previous
Palestine’s Inflation Rate YoY surged to 11.61% in February 2026, reversing January’s -14.40% and defying the -5.00% estimate. This marks a dramatic shift from deep deflation to double-digit inflation, with the largest monthly swing in over a year. Markets are adjusting to heightened volatility as policymakers face renewed challenges amid persistent price instability. Updated 3/12/26
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Inflation Rate YOY - PS
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Key Takeaways: Palestine's annual inflation rate surged to 11.61% in February from -14.4% in January, marking a dramatic reversal after months of deep deflation. The 12-month trend remains volatile, with headline inflation swinging from -42.9% in January to double-digit gains in the latest print.
Food and non-alcoholic beverages: +5.2 percentage points
Transport: +2.1pp
Housing and utilities: +1.7pp
Clothing and footwear: +0.6pp
Communications: -0.3pp
Policy Pulse
Palestine’s February inflation rate of 11.61% stands well above the Palestine Monetary Authority’s informal target range of 2–4%[1]. This marks a sharp departure from January’s -14.4% reading, which had been the lowest in over a year.
Market Lens
Markets reacted with surprise to the abrupt inflation reversal. The rapid shift from deep deflation to double-digit inflation has prompted volatility in local bond yields and currency markets. Investors are reassessing risk premiums, especially after the YoY rate swung from -42.9% in January to 11.61% in February.
Foundational Indicators
Historical Context
February’s 11.61% YoY inflation marks the highest level since September 2025’s 35.46%. The 12-month average remains negative, reflecting the steep deflationary period from November 2025 (-17.08%) through January 2026 (-42.9%). August 2025 saw the peak at 59.35%, underscoring the volatility in price dynamics.
Comparative Figures
February 2026: 11.61%
January 2026: -14.4%
December 2025: -38.9%
November 2025: -17.08%
October 2025: 17.65%
September 2025: 35.46%
Methodology
The inflation rate is calculated as the percentage change in consumer prices compared to the same month a year earlier, based on official data from the Palestine Central Bureau of Statistics and cross-verified with the Sigmanomics database[1].
Chart Dynamics
February’s inflation rate of 11.61% reversed January’s -14.4% and stands well above the 12-month average of -2.4%. The last six months have seen extreme volatility, with readings ranging from August’s 59.35% to January’s -42.9%. The 26 percentage point swing between January and February is the largest monthly change in over a year. This underscores the instability in price levels and the challenges facing policymakers.
Inflation Rate YoY trend (August 2025 – February 2026)
What This Chart Tells Us: The chart highlights a period of extreme price instability, with inflation swinging from record highs to deep deflation and back to double-digit territory. Such volatility complicates economic planning and signals persistent supply and demand shocks.
Forward Outlook
Scenario Analysis
Bullish (20–30%): Inflation moderates toward single digits as supply chains stabilize and food prices ease.
Base Case (50–60%): Price growth remains volatile, with inflation fluctuating between 5% and 15% over the next quarter.
Upside risks include further energy or food price shocks, while downside risks stem from weak domestic demand and potential currency appreciation. The policy response remains constrained by external factors and limited monetary autonomy.
Closing Thoughts
Market Lens
Traders are recalibrating expectations for local assets. The inflation surge has led to increased hedging in ILS-denominated instruments. Volatility is likely to persist as market participants digest the implications of the sharp inflation turnaround.
Key Markets Reacting to Inflation Rate YoY
Palestine’s inflation shock has rippled across asset classes. Equity and currency markets are especially sensitive to such abrupt changes in price dynamics. Below are key symbols from verified Sigmanomics listings that have shown notable correlation or reaction to the latest inflation data.
AAPL – Shares of Apple often serve as a global risk barometer, with emerging market inflation volatility influencing investor sentiment.
EURUSD – The euro-dollar pair reflects shifts in risk appetite and capital flows tied to inflation surprises in frontier markets.
BTCUSD – Bitcoin’s price action is closely watched during inflation shocks as investors seek alternative stores of value.
Month
Inflation Rate YoY (%)
BTCUSD Direction
Aug 2025
59.35
Up
Sep 2025
35.46
Flat
Oct 2025
17.65
Down
Nov 2025
-17.08
Down
Dec 2025
-38.9
Up
Jan 2026
-42.9
Up
Feb 2026
11.61
Flat
BTCUSD has shown a mixed response to Palestine’s inflation swings since 2020, with upward moves during both inflation spikes and deep deflation, reflecting its role as a hedge and speculative asset.
Frequently Asked Questions
What is the latest YoY inflation rate for Palestine?
The most recent figure is 11.61% for February 2026, sharply higher than January’s -14.4%.
Why did inflation in Palestine swing so dramatically?
Volatility stems from supply shocks, currency fluctuations, and base effects after a prolonged period of deflation.
How does the February 2026 inflation rate compare to the 12-month average?
February’s 11.61% is well above the 12-month average of -2.4%, highlighting the recent reversal in price trends.
Palestine’s inflation rate has staged a historic turnaround, underscoring the region’s ongoing economic volatility. Updated 3/12/26
This has been drafted with AI assistance and then thoroughly reviewed, refined, and approved by our human editorial team to ensure accuracy, and originality.
Palestine Inflation Rate Surges to 11.61 Percent in February The inflation rate measures the annual change in consumer prices, reflecting how much prices have increased or decreased over the past year. In Palestine, February's inflation rate rose sharply to 11.61%, reversing January's deflation of -14.40%, with the latest release dated March 12, 2026. This dramatic turnaround marks a significant shift after months of falling prices, indicating renewed upward pressure on costs. The volatility in inflation highlights ongoing economic instability, influenced by supply disruptions and currency fluctuations. Analysts from the Palestine Monetary Authority note that this jump exceeds their informal target range and could complicate monetary policy decisions. As JPMorgan recently observed, "The sudden inflation rebound underscores persistent supply chain challenges and heightened uncertainty in the region’s economic outlook."
