Jordan Inflation Rate Eases Slightly to 2.7% in July

The annual inflation rate in Jordan eased for the second consecutive month to 2.70% in July 2026, down from 2.79% in June, as the impact of the fuel price hike continued to fade. However, the latest reading remained close to the highest level since April 2023, recorded in May at 2.83%, driven primarily by higher fuel prices. The country raised fuel prices by 11% in April, the first increase since the Middle East conflict began, and partially adjusted fuel prices in May. Transportation costs remained the largest contributor to inflation, accounting for 1.08 percentage points. They rose 6.77%, easing from a 7.93% increase in June, as the impact of rising fuel prices started to fade. Rents followed, contributing 0.76 percentage points, with housing prices rising 3.86%, down from 3.96% in June. Meanwhile, inflation for food and non-alcoholic beverages accelerated to 0.70% from 0.37%. Monthly, the CPI fell 0.18% in July, marking the first monthly decline since November 2025.

The annual inflation rate in Jordan slowed slightly to 2.79% in June 2026, down from 2.83% in May. However, the latest reading remained close to the highest level since April 2023, recorded in May, driven primarily by higher fuel prices. The country raised fuel prices by 11% in April, the first increase since the Middle East conflict began, and partially adjusted fuel prices in May. Transportation costs remained the main contributor to inflation, accounting for 1.27 percentage points, as prices climbed 7.93%, accelerating slightly from a 7.69% rise in May, reflecting the impact of rising fuel prices. Rents followed, contributing 0.76 percentage points, with housing prices rising 3.96%, up from 3.33% in May. Meanwhile, inflation moderated for food and non-alcoholic beverages (0.37% vs 1.15%) and communication (0.28% vs 2.39%). Additionally, clothing prices fell at a faster rate (-0.48% vs -0.25%). On a monthly basis, the CPI rose 0.14% in June, easing from a 0.55% increase in May.

The inflation rate in Jordan accelerated to 2.83% yoy in May 2026, the highest since April 2023, from 2.49% in April, driven primarily by higher fuel prices. The country raised fuel prices by 11% in April, the first increase since the Middle East conflict began, and partially adjusted fuel prices in May. Transportation costs were the main contributors to May inflation, accounting for 1.23 percentage points, as prices rose 7.69%, accelerating sharply from a 3.32% gain in April. Housing prices also increased at a faster pace (3.33% vs 2.97%). Meanwhile, inflation moderated for health (0.35% vs 0.60%), communication (2.39% vs 2.40%), recreation and culture (0.68% vs 1.55%), and food and non-alcoholic beverages (1.15% vs 2.45%), while alcoholic beverages and tobacco remained steady at 3.98%, and household furnishings and equipment were nearly unchanged at 0.01%. By contrast, prices fell for clothing (-0.25% vs 0.50%) and restaurants (-0.08% vs 1.31%). Monthly, the CPI rose 0.55% in May.