Amman, Aug. 16 (Petra) -- The inflation rate rose to 2.13 percent in the first seven months of 2026, compared with 1.94 percent during the same period last year, as higher rents and transportation costs exerted the strongest upward pressure on consumer prices.

Data released Sunday by the Department of Statistics (DoS) showed inflation accelerated further in July, reaching 2.7 percent year-on-year, up from 1.68 percent in July 2025.

Despite the annual increase, consumer prices edged lower on a monthly basis, with the Consumer Price Index (CPI) declining 0.18 percent in July from June.

Rents were the largest contributor to inflation over the January-July period, adding 0.71 percentage points to the overall rate. Transportation contributed 0.52 percentage points, while oils and fats added 0.26 points and tobacco and cigarettes contributed 0.17 points.

The composition of inflation shifted in July, with transportation becoming the largest driver of the annual increase in prices. The category contributed 1.08 percentage points to the month's 2.7 percent inflation rate, followed by rents at 0.76 points and oils and fats at 0.29 points.

Declines in several food categories helped offset some of those price pressures. Lower prices for fruits and nuts reduced the July inflation rate by 0.2 percentage points, while meat and poultry subtracted 0.07 points and dairy products and eggs lowered it by a further 0.05 points.

The DoS calculates the CPI using a basket of 850 consumer goods and services, comprising 325 food and 525 non-food items. Price data are collected from a sample of 3,400 establishments.

//Petra// RZ