Jordan’s Inflation Rate Accelerates to 2.21 Percent Year on Year
The inflation rate in Jordan has accelerated by 2.21 percent year on year in the first two months of 2025, according to official data released by the Department of Statistics. This surge is attributed to rising prices across key commodity groups, with notable increases observed in personal luggage, tobacco and cigarettes, meat and poultry, spices, food additives, and other food products.
The general consumer price index reached 112.30 points during this period, reflecting a substantial rise compared to previous years. Personal luggage prices have soared by an impressive 16.69 percent year on year, followed closely by tobacco and cigarettes, which climbed 12.73 percent. Meat and poultry rose by 8.7 percent, while spices, food additives, and other food products advanced by 5.32 percent. Culture and entertainment costs also increased by 5.07 percent.
Jordan’s inflation rise reflects a broader surge in consumer prices, with the latest World Bank data showing a 1.2 percent increase in December and 2.6 percent in November. The ongoing Ramadan period is expected to drive up food costs amid higher household consumption. According to experts, these trends point towards a challenging economic environment for Jordan.
Key Commodities Driving Inflation
A closer examination of the data reveals that personal effects contributed significantly to the inflation increase, with an 18.39 percent rise year on year. Tobacco and cigarettes also played a major role, climbing by 12.73 percent. Meat and poultry rose by 8.69 percent, while spices, food additives, and other foods advanced by 5.34 percent. Culture and entertainment costs increased by 5.18 percent.
However, some categories did experience declines in prices. Furniture, carpets, and bedding saw a decrease of 3.46 percent year on year, followed closely by clothing, which dropped by 2.5 percent. Household appliances also experienced a decline, dropping by 2.31 percent. Dried and canned vegetables and legumes witnessed a smaller decrease, falling by 2.13 percent.
Jordan’s Industrial Production Index Showcases Resilience
In contrast to the inflation data, Jordan’s industrial production index demonstrated strength, rising by 2.76 percent year on year in January to reach 88 points. Manufacturing output climbed by 2.45 percent, while extractive industries surged by an impressive 5.95 percent. Electricity production also advanced by 4.52 percent.
However, the index did experience a slight decline on a monthly basis, dipping by 0.53 percent in January from December. This was largely due to a 1.25 percent decrease in manufacturing output. Despite this, extractive industries and electricity production continued to show resilience, rising by 11.08 percent and 0.5 percent respectively.
Industrial Producer Price Index Reflects Similar Trends
The industrial producer price index (PPI) rose by 0.23 percent year on year in January, reaching 107.13 points. This increase was driven primarily by a 0.23 percent rise in manufacturing prices and a 1.71 percent jump in extractive industries. Utility prices, particularly electricity, witnessed a decline of 1.08 percent.
On a monthly basis, the PPI climbed by 0.81 percent from December to reach 106.26 points. These trends indicate that Jordan’s industrial sector continues to face challenges, despite showing resilience in certain areas.
Conclusion
In conclusion, the inflation rate in Jordan has accelerated to 2.21 percent year on year in the first two months of 2025, driven by rising prices across key commodity groups. The general consumer price index reached 112.30 points during this period, reflecting a significant rise compared to previous years. While certain categories experienced declines in prices, the overall trend suggests a challenging economic environment for Jordan.