Gaza- Khader Abu Asr was able to buy two chickens, for the third time since the beginning of the war on the Gaza Strip, 15 months ago, after the significant decline in their prices following the entry into force of the ceasefire agreement.
Abu Asr, the father of 9 children, says that the significant increase in prices during the months of war prevented him from purchasing many needs, especially meat.
He stated – in his interview with Al Jazeera Net – that the majority of goods were missing in the markets, and if available, their prices were exaggeratedly high.
The citizen gave an example of chicken. He said that the price of a kilogram of chicken during the months of the war was 60 shekels (the dollar is equivalent to 3.55 shekels), but now it has decreased to 24 shekels, and he expects it to continue to decline.
Lubna Fawra expresses her great happiness at being able to buy a plate of eggs worth only 40 shekels, after their price during the months of the war amounted to 200 shekels.
She told Al Jazeera Net that she feels very relieved due to the decrease in the prices of goods and commodities, even though they are still higher than their real price.
She added, “We are now able to buy flour, rice, and sugar, but vegetables are still expensive, even if their price has fallen by half, and we cannot buy them. We hope that prices will continue to fall until they return to normal as they were before the war.”
Last Sunday, the first phase of the ceasefire agreement in Gaza entered into force, which stipulates the cessation of Israel’s aggression, the exchange of prisoners between it and the Islamic Resistance Movement (Hamas), withdrawal from the majority of the territory of the Gaza Strip, and allowing the return of the displaced to their areas.
The agreement also stipulates that Israel will allow about 600 trucks of aid and fuel to enter daily.
The Israeli blockade caused inflation to rise to a tremendous level, and in this regard, the World Bank said in a report issued last September that the level of inflation in the Gaza Strip reached 250% due to the consequences of the Israeli war.
International relief and human rights organizations accused Israel of practicing a policy of deliberate starvation of the population, as a method of collective punishment.
No money to buy
Vegetable trader Ibrahim Al-Riyati attributes the reasons for the decrease in prices to the increase in the amount of imports that are allowed to enter.
Al-Riyati admits that prices have placed a great burden on citizens who are already “poor” and do not have money.
He added to Al Jazeera Net, “The vegetables are completely imported from the West Bank, Israel and Egypt, and their quantities are small, and they are not a local product, and this is the reason for the high prices.”
During the months of the war, Al-Riyati noticed that only about 20% of the population were able to buy small quantities of vegetables, according to him.
He continues, “People do not have money, and depend on shelters and aid for their food, and even we, the merchants, have suffered great losses because of this.”
After the ceasefire, the prices of vegetables decreased by about 30%, according to Al-Riyati.
The lack of cash liquidity in the markets exacerbated the problem of the ability to purchase, which prompted Al-Riyati – and a large number of merchants – to develop an electronic payment method.
Benefits for buyers and sellers
Muhammad Hamad, a food supplies seller, is happy with the decline in prices because this situation has increased his profits, he says.
Hamad stated – in his speech to Al Jazeera Net – that the decrease in prices increased the level of citizens’ demand for purchases, unlike the situation in the past.
And he said:
- A kilo of flour or wheat semolina used to cost 30 shekels, now it costs 7 shekels.
- Rice was 30 shekels and now it is 12 shekels.
- Sugar used to cost 70 shekels, but now it costs 5 shekels.
In addition to the increase in the quantities of imported goods, Hamad attributes the reason for this decrease to some merchants putting their stored goods on the markets for fear of their being depressed if larger quantities of imported products enter.
Before the war, Ismail Dardasawi was selling a plate of eggs for about 200 shekels, and the price of one egg was 7 shekels (about two dollars).
Today, the ceasefire has led to a significant drop in the price, as a plate of eggs (30 pieces) now costs 40 shekels.
Al-Dardasawi expects – in an interview with Al-Jazeera Net – that eggs will continue to decline, bringing the price of an egg to only one shekel.
Muhammad Al-Falouji, a food seller, agrees with Al-Dardasawi that the ceasefire caused a significant drop in prices.
He told Al Jazeera Net that the high prices were a problem for sellers before buyers, given the difficulty of selling it due to the financial crises that the population is suffering from.
He added, “Before the ceasefire, prices were very expensive. We used to sell with difficulty and buy from wholesalers at a high price and sell at a high price. Now the prices have dropped and we have a profit margin, and there is better demand.”
Al-Faluji expected that prices would return to normal as they were before the war, after the return of the displaced from the south of the Strip to the north.
Aid behind lowering prices
Muhammad Abu Jayab, editor-in-chief of Al-Eqtisadiah newspaper in the Gaza Strip, explains that a decline in prices is expected due to the entry of large quantities of humanitarian aid.
Speaking to Al Jazeera Net, he said, “With the start of the distribution of aid that enters daily, citizens’ demand for buying goods from the markets will decrease because there is no need for them, and this will prompt merchants to reduce their prices and put them on the markets for fear of their stagnation.”
Despite this, Abu Jiab points out that prices are still high, and beyond the ability of citizens to purchase. He added that it will not return to normal until the private sector is able to import directly, without the current restrictions imposed by the occupation.
