Inflation ticks 1.2% below its 2015 post May level

AMMAN — Consumer price index (CPI) average dropped by 1.2 per cent at the end of the first five months of 2016 compared with the figure recorded at the end of May last year, according to a Department of Statistics (DoS) statement.

The figure was the computed outcome of an increase in the prices of some commodities coupled with a drop in the prices of others. 

The DoS statement, which followed its release of a monthly report on inflation, said the decline was due to a slowdown in transport, fuel and lighting prices, reflecting international trends and a base effect (the elimination of fuel subsidies in 2012 had triggered a one-off upward adjustment in fuel prices). 

Since then, the contribution of these commodities to inflation has dropped. 

Also, the prices of meat and poultry dropped by 7.6 per cent, according to the DoS statement. 

While rents continued to be the main driver for the increase, recreation, clothing and education expenses ticked up, though at a lesser degree.  

The increase in rents partly reflects additional demand by Syrian refugees on housing, especially in the northern governorates.