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But how can prices be controlled with rising costs, as we see due to regional conditions affecting the global economy, and with mounting expectations of a looming energy crisis?
Tools to curb inflation include raising interest rates on Dinar-denominated instruments, as well as treasury support to stabilize prices of basic commodities. However, there are other methods, including reducing local production costs and merchants seeking lower-cost sources for goods.
The latest report by the Department of Statistics on the General Consumer Price Index (inflation) for September 2026 stated that the inflation rate during the first nine months of the current year reached 2.26% compared to the same period in 2025, reflecting that inflation levels remained within moderate ranges during the current year.
Inflation may rise for reasons unrelated to local economic activity, as it includes rising costs, such as fuel, the price of which depends on global conditions beyond Jordan's control, and agricultural products, which fluctuate according to seasons and are affected by export conditions.
The average citizen is concerned with prices and does not follow inflation indicators, nor are they interested in comparisons or any calculations attributed to economic growth or increased demand. What they perceive as prices in the market is what matters to them in maintaining their purchasing power. As for the monetary authorities, i.e., the Central Bank, they are also concerned with the core inflation rate; because it is mostly a product of local supply and demand, which is the primary consideration that determines interest rates.
The Central Bank has used its various tools to hedge against expected inflation due to rising import costs—meaning higher prices of goods in countries of origin—but inflation remained below the level required or healthy for the economy. This does not necessarily mean that prices have fallen, but rather that they have maintained somewhat high levels previously recorded, which is known as core inflation that was higher than desired.
Is there desired and undesired inflation? The answer is yes; the belief is that inflation between 3% and 4% is a healthy rate indicating economic activity, but conversely, economic growth rates are supposed to be equal to or higher than that, even by small percentages.
An increase in Gross Domestic Product (GDP) at current prices would reduce the debt ratio, thereby affecting the budget deficit and the ratio of public debt to GDP.
Likewise, inflation leads to the same result when it affects economic growth.
Treating imported inflation is only possible by adjusting customs and sales taxes upward or downward to neutralize the impact of inflation, which is extremely difficult to implement, though we do not say it is impossible.
Current inflation is not a cause for concern, but it becomes one if it jumps suddenly or drops further than that.
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