Jordan records one of the lowest inflation rates in the World

view of the Amman cityscape
(File photo: Jordan News)
.AMMAN – Jordan has never been immune to global crises and challenges affecting the world economy. However, through the strength and resilience of the national economy and the fiscal and monetary policies led by the Jordanian Central Bank (CBJ), it has successfully recorded an inflation rate of 2.13 percent, one of the lowest in the world.اضافة اعلان

As reported by Al-Ghad Newspaper, the general Consumer Price Index (CPI), representing inflation, has risen by 2.13 percent from the beginning of the current year until the end of last November, reaching 108.95 points compared to 106.68 for the same period last year.

Former Finance Minister Dr. Mohammad Abu Hammour stated that inflation is currently a global phenomenon due to the economic crises and wars worldwide, especially those caused by the COVID-19 pandemic, the Russo-Ukrainian war, and the recent conflict in Gaza. He emphasized that the measures taken by the Central Bank were effective in curbing inflation and reducing it significantly.

Abu Hammour explained that most countries generally aim to maintain an inflation rate around 2 percent, which contributes to achieving economic growth, creating job opportunities, and is considered a healthy phenomenon. The fact that Jordan has maintained low inflation rates compared to other countries, some of which recorded double-digit inflation, reflects its success in economic stability.

He further added that a sharp increase in inflation leads to various economic challenges, including a decline in the purchasing power of the local currency, reduced living standards for citizens, and an increase in interest rates, negatively affecting investment and raising the cost of local products. Monetary policies typically work to combat rampant inflation through tools and measures taken by the central bank to maintain monetary stability and achieve general price stability.

Regarding the increase in inflation in some specific categories, Mohammad Walid Al-Jeitan, representative of the food, supply, and animal wealth sector in the Jordan Chamber of Industry, mentioned that despite the rise in the Consumer Price Index for the food and non-alcoholic beverages category, which increased by 0.5 percent from the beginning of the current year until the end of last month, several items within this category experienced a price decrease. These included vegetables, legumes, canned goods, fruits, nuts, meats, poultry, fish, and other food products.

Jeitan pointed out that there were no significant increases in the prices of local food during the current year. The Jordanian food industries continued to maintain stable prices, despite relying heavily on importing raw and primary materials from abroad, which are subject to fluctuations in global prices due to global crises. He emphasized that the competitiveness of the food products sector within the local market has remained strong, contrary to what is sometimes portrayed.

Jeitan also called for the acceleration of the project to extend gas to all cities and industrial areas, as it plays a fundamental role in reducing costs and increasing competitiveness. Additionally, he stressed the importance of providing incentives to enable economic sectors to attract more local and foreign investments, aiming to mitigate any potential impact.

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