Amman, June 29 (Petra) - Jordan has kept inflation under control in recent years, with rates remaining below global levels despite economic and geopolitical pressures, supported by government measures and flexible monetary policies by the Central Bank of Jordan (CBJ).
Official data showed inflation averaged 1.88% during the first five months of 2026, compared with 1.97% in the same period last year. Over the past five years, Jordan's average inflation rate stood at 2.198%, compared with 5.194% globally.
Economists attributed the stability to coordinated fiscal and monetary policies, strategic food and energy reserves, improved supply chain resilience, and measures aimed at limiting price pressures. They noted that maintaining stable prices has helped protect purchasing power and strengthened investor confidence.
The CBJ supported price stability through interest rate adjustments, liquidity management, and maintaining foreign currency reserves to safeguard the dinar's exchange rate. Reducing mandatory reserve requirements also provided additional liquidity to support economic activity.
Experts told the Jordan News Agency (Petra) that Royal directives to strengthen food security and increase investment in the food industry have helped ensure the continued availability of essential goods in markets amid disruptions to global transportation, shipping, and trade.
Financial and banking sector representative at the Jordan Chamber of Commerce (JOCC) Firas Sultan said government economic and financial policies helped protect purchasing power and maintain price stability despite global market volatility.
He said coordination between fiscal and monetary policies, market monitoring, and strategic reserves of essential goods strengthened economic stability and supported consumer and private sector confidence.
National Society for Consumer Protection (NSCP) President Mohammad Obeidat said government measures during regional tensions, including managing fuel costs, reducing shipping expenses, and maintaining supplies, helped limit price increases on essential goods.
Economic expert Munir Deh said continued operation of key sectors, including agriculture and industry, helped maintain adequate supplies of food products and stabilize markets. He noted the role of ports, airports, and border crossings in ensuring uninterrupted supply chains.
Economist Hossam Ayesh said the Kingdom's inflation rate remained below global averages over the past five years, noting it peaked at 4.23% in 2022 compared with around 7.19% globally before declining.
He attributed the stability to strategic reserves of essential goods and energy, diversified supply sources, and the CBJ’s role in maintaining exchange rate stability and investor confidence.
Ayesh added that reducing the mandatory reserve ratio injected around JD760 million in additional liquidity into the market, supporting the private sector. He pointed to the growth of local industries, social protection programs, and improved government spending efficiency as factors contributing to economic resilience.
He stressed that Jordan's foreign currency reserves provide strategic capacity to finance imports and secure essential needs, helping protect consumers and maintain market stability during regional and global uncertainty.
//Petra// HA
