The price of coffee in Jerusalem has risen insanely,” said Mustafa Ahmad, 65. “An ounce of coffee used to cost 14 shekels, but now it has now reached [from] 14 to 20 shekels. This cannot be accepted.”1 Carrying a bag of ground coffee whose warm aroma surrounded him, he made a strong complaint about the rise in cost. He did not plan to stop drinking coffee, he told Jerusalem Story, but he would have to reduce his daily coffee intake.
The increase in the cost of coffee has been accompanied by a spike in the cost of other items, all of which have alarmed Palestinian Jerusalemites.
All evidence since the beginning of 2025 suggests that the wave of rising prices will break the backs of many Palestinian Jerusalem families and push some below the poverty line. This will be clearly reflected in the coming months.
One of the owners of an Old City shop told Jerusalem Story that he owes more than NIS 100,000 to the municipality for the arnona tax. The Jerusalemite (who asked not to be identified for fear of being targeted) was surprised by the noticeable increase in the rate of the arnona tax on Palestinian residences and shops. He said that, in addition to the unjustified tax hike, there is a new tax rate for those who have moved into a new rented or purchased property since 2022 that almost doubled the arnona tax on their housing units. “It is now possible that two apartments in the same building with exactly the same size will be taxed differently depending on the date of registration [occupancy].”2
He added that authorities have ordered business owners to make sure their shop signs include Hebrew.