Amman — Economic experts have attributed Jordan’s relatively moderate inflation rate to a combination of factors, including the stability of the Jordanian dinar’s exchange rate, the availability of basic commodities and the regular flow of supply chains, in addition to government measures aimed at mitigating the impact of rising energy and shipping costs on domestic prices.
Amid continued increases in global energy costs, experts stressed the importance of reducing transportation, energy and production costs, improving the efficiency of supply and distribution chains, boosting domestic production and diversifying import sources. These measures, they said, would help maintain price stability, support economic growth and strengthen household purchasing power and real incomes.
Economists said moderate inflation provides important economic benefits, most notably limiting the erosion of purchasing power, strengthening the ability of households and businesses to plan financially, and creating a more stable environment for consumption, production and investment. This, in turn, supports continued economic activity and improves prospects for sustainable growth.
The inflation rate reached 2.26% during the first nine months of the current year, while the annual inflation rate stood at 2.73% in September compared with the same month last year, according to the latest official figures.
Economics professor Mohammad Al-Hadab Al-Sarhan said Jordan’s ability to maintain moderate inflation, which reached 2.26% during the first nine months of 2026, reflects the national economy’s capacity to contain a significant portion of price pressures despite geopolitical disruptions and fluctuations in global energy and shipping markets.
He said the importance of this indicator goes beyond price stability, as it strengthens the ability of households and businesses to plan financially, limits the erosion of purchasing power and provides a more stable environment for investment and production.
Al-Sarhan considered the combination of moderate inflation and 3% economic growth in the second quarter of this year a positive indicator that economic activity is continuing without widespread price pressures. He described this balance as important for supporting sustainable economic growth.
Al-Sarhan explained that Jordan’s ability to maintain moderate inflation is linked to a range of interconnected factors, foremost among them monetary stability maintained by the Central Bank of Jordan and the stability of the dinar’s exchange rate against the US dollar. This helps reduce fluctuations in import prices resulting from exchange rate movements and strengthens market confidence in the national currency.
He added that strong foreign exchange reserves support the economy’s ability to withstand external shocks and maintain monetary stability, while lower prices for some food groups, including vegetables, fruits and dairy products, helped ease inflationary pressures in September.
These factors, he said, helped limit the transmission of some external shocks to domestic prices. However, he noted that Jordan’s economy remains exposed to changes in global energy and food prices as well as international transportation costs because the country relies on imports to meet a significant portion of its needs.
Al-Sarhan said moderate inflation offers important benefits to the national economy, particularly by limiting the erosion of households’ real incomes, reducing uncertainty for investors and helping companies estimate production and expansion costs more accurately.
He noted that price stability strengthens the competitiveness of Jordanian products when accompanied by higher productivity and better control of energy and transportation costs, supporting exports and employment opportunities.
He stressed that a lower inflation rate does not necessarily mean that the general price level is falling, but rather that prices are rising at a slower pace. Therefore, the impact of price stability on citizens’ lives also depends on the growth of wages and real incomes.
He said the greatest economic benefit is achieved when productivity and incomes grow faster than the cost of living, allowing citizens to experience a tangible improvement in purchasing power.
Al-Sarhan added that sustaining this trend requires moving beyond containing inflation to addressing the factors that drive up living and production costs. This includes accelerating the development of public transportation and connecting residential areas with employment centers, as well as improving the efficiency of logistics and supply chains to reduce the cost of moving people and goods.
He also called for encouraging residential investment in areas experiencing rising rents and improving the efficiency of wholesale markets, storage and distribution to reduce waste and fluctuations in food prices. He also stressed the importance of diversifying import sources and strengthening domestic production of goods in which Jordan has competitive advantages.
These measures, he said, are consistent with the objectives of the Economic Modernisation Vision, as they help reduce production costs, strengthen the competitiveness of the private sector and provide more sustainable solutions than relying on temporary measures to address rising prices.
Al-Sarhan concluded that maintaining inflation at moderate levels is one of the strengths of the Jordanian economy. However, he said the annual inflation rate rising to 2.73% in September requires continued monitoring of price pressures, particularly in transportation and rents.
He stressed that the success of the next phase should be measured by the economy’s ability to maintain price stability while accelerating growth and increasing productivity and incomes. The real value of moderate inflation, he said, becomes evident when economic stability translates into greater purchasing power, lower production costs and broader employment opportunities for Jordanians.
Economic expert Hossam Ayesh said Jordan’s ability to keep inflation at moderate levels despite regional turmoil and higher energy, shipping and supply-chain costs reflects the impact of a combination of economic factors and policies that have helped limit the transmission of external pressures to the domestic market.
Ayesh said the regular flow of supply chains and the availability of goods and products in markets, combined with households’ efforts to rationalize spending amid uncertainty, had contributed to keeping inflation moderate.
He explained that the growing use of electric vehicles has helped moderate demand for petroleum products, while government measures concerning fuel prices and the absorption of part of the cost differences have limited the transmission of global price increases to domestic markets.
He noted that the government announced that it would absorb around JD255 million in costs related to the energy and petroleum products sector, helping ease price pressures.
Ayesh said moderate inflation has economic significance beyond the numerical indicator itself, as it helps limit the erosion of household purchasing power, supports the continuity of commercial and consumer activity, and provides a more stable environment for businesses, investors and tourists, particularly amid current regional conditions.
Regarding monetary policy, Ayesh said Jordan’s moderate inflation is the result of prudent monetary policies pursued by the Central Bank of Jordan, which seek to balance monetary stability with economic growth.
He said maintaining this course requires continued fiscal, monetary and livelihood policies that limit price pressures, alongside consideration of integrated economic options, including interest rates and tax measures, while taking into account the needs of economic and investment activity and the country’s ability to achieve higher growth rates.
Economic expert Munir Diah said Jordan’s ability to maintain moderate inflation at 2.26% during the first nine months of the current year, despite geopolitical challenges and rising global energy prices, shipping costs and maritime insurance, reflects the national economy’s capacity to absorb external shocks and limit their impact on domestic markets and citizens’ purchasing power.
Diah said the Jordanian economy has gained greater resilience in dealing with crises as a result of economic policies and measures adopted by successive governments, drawing on lessons from crises that have affected the region and the world. This, he said, has helped maintain market stability, ensure the availability of basic commodities and limit inflationary pressures.
He explained that diversifying energy sources, expanding reliance on renewable energy and making use of natural gas, along with supporting domestic production in the industrial and agricultural sectors, have strengthened the economy’s ability to withstand external fluctuations and ensure a continuous supply of goods.
He noted that maintaining safe strategic reserves of basic commodities, including wheat, barley, grains and food products, diversifying import sources and keeping land, sea and air crossings operational during crises have helped ensure the availability of goods in domestic markets and reduce the risk of shortages or sharp price increases.
Diah said measures taken to mitigate the impact of higher shipping costs, along with support for certain basic commodities and the absorption of part of fuel price differences, have helped limit the transmission of global price increases to domestic markets and maintain moderate inflation.
He explained that the monetary policy pursued by the Central Bank of Jordan, maintaining the dinar’s exchange rate against the US dollar and managing interest rates in line with global monetary developments have contributed to strengthening monetary stability and limiting imported inflationary pressures.
He stressed that comfortable foreign currency reserves, combined with the ability to secure the Kingdom’s basic commodity needs for extended periods, strengthen the national economy’s capacity to continue supplying the domestic market and support price stability amid ongoing regional and international challenges.
Source: Al-Ghad
