Jordan’s annual inflation rate eased for the third consecutive month in August 2026, slowing to 2.66% from 2.70% in July. This was the lowest reading since May, reflecting the waning impact of earlier fuel price increases. The government raised fuel prices by 11% in April—its first hike since the onset of the Middle East conflict—and made a partial upward adjustment again in May.
Transportation remained the largest driver of inflation, contributing 1.12 percentage points, as transport prices rose 7.02%, up from a 6.77% increase in July. Rents were the second-biggest contributor, adding 0.76 percentage points, with housing costs increasing 3.81%, slightly below July’s 3.86%. Inflation in food and non-alcoholic beverages also moderated, contributing 0.23 percentage points compared with 0.70% previously.
On a monthly basis, the consumer price index (CPI) fell 0.25% in August, following a 0.18% decline in July, marking a second consecutive month of deflation in headline prices.
