The Israeli crackdown on smuggling tunnels in the Philadelphi corridor is having a terrible effect on the Palestinian economy.

The price of smuggled bullets is going through the roof. (Hat tip: Mara.)

Gaza Strip arms prices reportedly have spiked since Israel began cracking down on weapons-smuggling tunnels.

Ha’aretz reported Tuesday that a contraband AK-47 bullet, which cost just more than $1 before the start of the intifada in September 2000 now goes for five times as much in Gaza. Israeli authorities monitor such inflation as a gauge of the army’s success in uncovering tunnels in Rafah, which lies on Gaza’s southern border with Egypt.