Average inflation in Jordan

It is the average annual inflation rate for Jordan: the average change in consumer prices over the year rather than the year-end figure. It reflects the average rise in the household basket of goods and services across the full year.

It is obtained by comparing the annual average consumer price index level with that of the previous year, based on regular price collection across a sample weighted by household spending. Comparable cross-country series come from the IMF's annual estimates.

Inflation is a key barometer of the cost of living and of economic policy. With the Jordanian dinar pegged to the US dollar, the central bank lacks a fully independent rate policy, so inflation is watched mainly for its impact on purchasing power and on the sustainability of the peg.

It is a low-frequency figure subject to revision. As an annual average it smooths intra-year moves and can be slow to reflect recent turning points, while energy and food prices, largely imported, add volatility to the reading.