Food Prices to Drop by 20 to 30 percent – JCC

Food prices in Jordan are projected to decline this year by 20 to 30 percent, according to Raed Hamadeh, the food sector representative at the Jordan Chamber of Commerce (JCC).

The price drop, which is largely due to the decline in global oil prices, will primarily involve food stuffs sold at supermarkets, Hamadeh said. But restaurants and cafes were unlikely to reduce their prices because their operating costs have increased due to recent electricity tariff hikes.

Hamadeh believes the drop in food prices will have multiple benefits for the Jordanian economy. “It will have a positive impact on Jordanian families who will be able to consume more and it will particularly benefit the food service sector,” he said, adding that it will also result in more income for the government.

The drop in prices will come as a relief to consumers after price rises last year. According to Hamadeh, food prices in 2014 were 40 percent to 60 percent higher in comparison to 2010. He explained that this was due to higher global oil prices and local electricity prices, as well as the instability of the global economy.

Hamadeh noted that the Kingdom’s food prices are tied to the global economy and oil prices in particular. While the cost of oil is projected to remain low over 2015, significant fluctuations could result in further changes to food prices over the year.