VZCZCXYZ0000
RR RUEHWEB

DE RUEHAM #1985 2441341
ZNR UUUUU ZZH
R 011341Z SEP 09
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC 5847
INFO RUEHGB/AMEMBASSY BAGHDAD 6288
RUEHLB/AMEMBASSY BEIRUT 3093
RUEHEG/AMEMBASSY CAIRO 4135
RUEHDM/AMEMBASSY DAMASCUS 4235
RUEHRH/AMEMBASSY RIYADH 2201
RUEHTV/AMEMBASSY TEL AVIV 1845
RUEHJI/AMCONSUL JEDDAH 0903
RUEHJM/AMCONSUL JERUSALEM 5625
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS AMMAN 001985 
 
SIPDIS 
 
STATE FOR NEA/ELA AND EEB 
 
E.O. 12958: N/A 
TAGS: ECON SOCI JO
SUBJECT: JORDAN'S CONSUMER PRICE INDEX DROPS; CENTRAL BANK GOVERNOR 
SAYS INFLATION RISKS ARE LOW 
 
REFS: A) AMMAN 1955 
B) AMMAN 1942 
C) AMMAN 1867 
D) AMMAN 1646 
E) AMMAN 877 
F) AMMAN 193 
 
¶1. (U) The consumer price index (CPI) in Jordan dropped 0.1% over 
the first seven months of 2009 when compared to the same period in 
2008, according to Jordan's Department of Statistics (DOS).  The DOS 
figures show that the drop in CPI for the first seven months of 2009 
is due to a drop in prices of several key commodities and services 
during that time period including transportation (-16.9%), fuel 
(-11.5%), vegetables (-6.7%), fruits (-3.2%), and healthcare 
(-2.3%). 
 
¶2. (U) Jordan's CPI fell 3.6% when comparing July 2008 and July 
2009, due in part to a 21.5% drop in transportation prices and a 
19.9% decrease in fuel prices.  While there was a 0.3% increase 
between June 2009 and July 2009, attributed mainly to an increase in 
fuel, meat and vegetable costs, the net result since January 2009 is 
a drop of 1.6% in prices.  Comment:  The Islamic holy month of 
Ramadan (August 22 to approximately September 21) will likely impact 
CPI as the month is historically marked by a spike in food prices 
that should be reflected in the October 2009 CPI figures (ref C). 
End comment. 
 
¶3. (U) 2008 was a tough year for Jordanians with double-digit 
inflation figures at year-end reaching 13.9%, but the current 
inflation rate stands at -0.1% (ref E).  Commenting on inflation in 
2009, Central Bank of Jordan Governor Umayya Toukan said in an 
August 21 television interview that he was not worried about 
inflation risks in Jordan even with the recent rise in oil prices. 
He noted that with oil prices at $70 per barrel, inflation was not a 
major concern compared to last year when oil prices were $140 per 
barrel. 
 
Visit Amman's Classified Website at 
http://www.state.sgov.gov/p/nea/amman 
 
BEECROFT