17.08.202602:00:31UTC+00Jordan Inflation Rate Eases Slightly to 2.7% in July

Jordan’s annual inflation rate eased for the second straight month, slipping to 2.70% in July 2026 from 2.79% in June, as the impact of earlier fuel price hikes continued to diminish. Despite the moderation, inflation remained near its highest level since April 2023, after peaking at 2.83% in May, largely due to more expensive fuel. In April, the government raised fuel prices by 11%—the first increase since the onset of the Middle East conflict—followed by a partial adjustment in May.

Transportation costs remained the main driver of inflation, contributing 1.08 percentage points to the overall rate. Although transportation prices were still up 6.77% year-on-year, this marked a slowdown from June’s 7.93% rise, reflecting the waning effect of the fuel price shock. Rents were the second-largest contributor, adding 0.76 percentage points, as housing costs climbed 3.86%, slightly below June’s 3.96% increase. In contrast, inflation for food and non-alcoholic beverages accelerated, rising 0.70% compared with 0.37% in June.

On a monthly basis, the consumer price index (CPI) fell by 0.18% in July, marking its first decline since November 2025.