The Palestinian Authority on Tuesday said it asked a special economic committee to study a government memo about the rising cost of living in the occupied territories.

The committee will respond to the memo, prepared by the ministry of national economy, within two days. The report focuses on possible ways to cope with the situation amid growing protests.

The assignment was made during the PA cabinet’s weekly meeting in Ramallah where prime minister Salam Fayyad and his ministers discussed the financial situation as they prepared a budget for 2013.

Ministers also addressed an arson attack by extremist Israeli vandals, and agreed that settlers have obviously been targeting the Palestinian presence in Area C as well as east Jerusalem, the Jordan Valley, southern Hebron and southeast Jerusalem.

Ministers highlighted that Israel had been working on a settlement project called E1 which is aimed at isolating Jerusalem from its Palestinian surroundings. To finalize this “colonial” project, PA ministers argued, Israel plans to take control of a large area of Palestinian land.

The minister of local governance updated the cabinet ministers on the preparations for local elections and called on Palestinians across the West Bank to practice their right to elect their representatives.

Elections are scheduled to take place on Oct. 20, but Hamas has refused to let Gaza participate.