Macroeconomic Forecast Jordan

We forecast consumer price inflation in Jordan to come in at 5.5% y-o-y in 2011, up from 5.1% in 2010. Higher global commodity prices will feed through into higher consumer prices, given the 'food' component accounts for 36.6% of the total consumer price basket. Despite the government's subsidies, we believe some upside pressure will remain, though stress that price controls could limit more pronounced inflationary pressures in the near term.

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