Gaza prices soar as trade restrictions and profiteers squeeze essentials

A 25-kilogram bag of flour surged to 1,125 shekels in late July 2025 before falling to 175 shekels by late August, a brutal swing that showed how war, restrictions and profiteering had turned the basics of daily life into commodities few families could afford. In the same market, a July price survey cited by the Gaza Chamber of Commerce put sugar at about $100 to $106 per kilogram, flour at about $30 per kilogram or $305 for a sack, rice at $30, lentils at $23 and tomatoes at $30.

The price shock followed a deeper economic collapse. The World Bank estimated that Palestinian GDP contracted by 27% in 2024, and by late 2024 the bank and United Nations reporting described the Palestinian economy as nearing freefall. In Gaza, the World Food Programme said many basic food items had risen by more than 1,000% compared with pre-conflict levels, while tomato prices in northern Gaza jumped by 8,789% in November 2024. What had once been ordinary groceries had become luxury goods for households already stripped of income and cash.

By spring 2025, even finding staples had become a daily hunt. The United Nations said customers were searching for flour, salt, sugar and oil, but the items were either unavailable or beyond reach because of the liquidity crisis and the non-use of e-payment mechanisms on the informal market. On 22 June, the United Nations Office for the Coordination of Humanitarian Affairs said 209,000 meals were being prepared and delivered each day by 12 partners through 45 kitchens, down 80% from 1.07 million meals a day at the end of April. OCHA also said black-market cooking gas was largely unavailable and many families were burning waste for fuel.

The squeeze extended to aid itself. The United Nations said in June 2025 that most flour delivered in Gaza was either taken by starving civilians or looted by armed gangs before it reached intended destinations, and aid groups estimated that Gaza needed 8,000 to 10,000 metric tons of flour just to give every family a bag and ease pressure on the markets. An OCHA official described the new aid distribution scheme as “deprivation by design,” while Israeli authorities said restrictions were needed for security and accused Hamas and criminal gangs of diverting supplies.

At the same time, Gazans said Hamas was levying fees on some privately imported goods, including fuel and cigarettes, and fining merchants for overcharging, though Hamas denied raising taxes and said it was trying to keep prices down. With border closures, broken supply lines, cash shortages and armed actors skimming value at every step, the price of survival in Gaza kept climbing far beyond the reach of ordinary households.