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Jordan inflation to fall to 2.2% by 2027
The report issued by Fitch Solutions predicts that Jordan's inflation rate will decrease to 2.2% in 2027, following a projected rise to 2.7% in 2026, compared to around 1.8% in 2025. The increase in 2026 is mainly attributed to rising food prices, which make up about 27% of the consumer price index basket, along with disruptions in supply chains and import routes due to navigational disturbances across the Strait of Hormuz. It is expected that geopolitical conditions will improve, and trade through the strait will resume, easing pressures and leading to a decline in inflation in 2027. The report also notes that the Central Bank's policies will involve raising interest rates by 25 basis points in September 2026, although banks have announced they will not increase quotas on existing loans to avoid additional burdens on borrowers. Additionally, there are expectations of a 50 basis point cut in U.S. interest rates in 2027 to support monetary conditions.
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