Inflation rises in first quarter

AMMAN — The consumer price index (CPI), a measurement of inflation, rose by 3.2 per cent during the first quarter of this year compared with the same period of 2013. 

The computed rise of the CPI is the result of an increase in prices of rents, vegetables, cigarettes, tobacco, clothes and shoes, while commodities that recorded a drop in their prices included personal care products, fuel and entertainment services, according to a Department of Statistics report. 

Rents rose by 7.7 per cent, vegetables by 10.7 per cent, cigarettes and tobacco by 10.2 per cent and clothes by 7.1 per cent.  

International creditors have cited the relatively stable inflation rate as a point of strength.

The International Monetary Fund has recently said that year-on-year inflation dropped to just above 3 per cent, while GDP growth increased to about 3 per cent in 2013, with more robust activity in the financial services, telecommunications, trade and construction sectors. 

Another positive indicator is the current account deficit, which is estimated to have improved by over 5 per cent to less than 10 per cent of the GDP, helped by lower energy imports, higher transfers and private receipts.