AMMAN — Jordan’s
inflation will continue
to rise amid expectations of impending increases in food and transportation
costs caused by the war in Ukraine, Fitch Solutions said.
اضافة اعلان
A research arm of
Fitch Ratings, one of America’s
leading credit rating agencies, Fitch Solutions said it expects the country’s
average inflation to rise from 2.9percent to 3.6percent this year. Inflation
stood at 3.6percent last April.
The research body indicated that the new energy
tariff in Jordan, which entered into force on April 1 led to an increase in
electricity and fuel prices by 26.7percent on a monthly basis. It did not
explain where the figure came from.
But it said although the new tariff is designed to
reduce costs for nearly 90percent of the subscribers, the lower subscription
numbers, due to the complexities surrounding the new digital registration
process, mean that up to 40percent of Jordanian households incur higher costs.
It said it expected the number to remain high in the coming months.
Economic expert
Yusuf Mansur told
Jordan News that inflation was “due to the fact that the number of imports constitute
55percent of the gross domestic product, 87percent of the calories consumed by
each citizen are imported, and 90percent of the energy is imported.”
“The government is the biggest beneficiary of
inflation,” he asserted.
He said he believed that inflation will not last
long, explaining that the main causes of inflation are disruption of supply
chains, high prices and production ceased in factories.
Economist Zyan Al-Zawaneh told
Jordan News that global and local inflation indicators have become clear, as Jordan’s
imports constitute 90percent to 95percent, and that inflation rates will
witness a gradual rise.
“Until this moment, the government is responsible
for the monetary policy and the economy, but it hands off approach towards the
inflation crisis,” he said.
Zawaneh called for forming a permanent committee,
“as we may face a coming shock that may last for months.”
“We are approaching a hot summer, but we do want to
enter an explosive summer,” he said. “So, we must distribute the load,
especially in issues which affect Jordanian lives and security.”
He said the government must face the internal and
the external shock related to inflation and develop effective solutions. “This
is its role, but until this moment, it has remained neutral and has not done
anything,” he maintained.
He emphasized that the upcoming inflation will “lead
us to a stage of high prices and low demand for months.”
Economic expert Mufleh Al-Aqel told
Jordan news that the whole world suffers from inflation and this fact was represented by a
sharp rise in the prices of foodstuffs, especially wheat, which rose by
60percent. He said that the price of one tonne of wheat jumped to $452, up from
$320.
He said he expected inflation to reach to 65percent.
Aqel explained that
people’s purchasing power will weaken further, bringing down demand. But he
added that the envisaged increases in oil derivatives will significantly
contribute to raising the inflation.
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