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British Mandate: A Survey of Palestine: Supplement - Page 110

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British Mandate: A Survey of Palestine

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of territories in which, generally, the price level has been higher than in Palestine.

The influence of these two factors is steadily decreasing although in the case of bread-grains, oils and fats and certain other commodities Palestine is still dependent on allocations as to quantity and source which are made by the International Emergency Food Council.

The decreasing influence of the two factors is reflected in the following table.

INDEXES OF THE VOLUME AND AVERAGE VALUE OF IMPORTS.

BY CLASS. (1939 = 100).
It will be seen that in the year 1946 the "physical volume" of Palestine's total imports had recovered to a point 17 per cent. above the level of 1939. In the case of food imports the increase in volume amounted to 39 per cent. If account is taken of the diamond trade which has grown up during the war years, it will be found that the increase in the volume of imports amounted to 28 per cent. above the 1939 figure. It is of interest to note that in spite of this volume of imports, the price level, as reflected by the cost-of-living index did not decline in the year 1946. At a figure of 275 in December, 1946, the index was in fact 5 per cent. higher than at the start of the year. The continued high level of the index was due to two main factors : (i) the high rate of military expenditure throughout the year; (ii) the shortage of oils and fats resulting from t:he Indian Government's embargo on the export of oil seeds from India, which constituted Palestine's main source of supply. combined with the cyclical failure of the local olive-oil crop.

Page 110
 
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