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07/10/2008

Prices Rise in Jordan (Part I)

There has been severe inflation in Jordan over these past few years. From 2003 to 2008, the price of sugar (that supports the lifestyle of sweet-tooth Jordanians) has risen from JPY1,000 to JPY4,000 per 50kg, and similarly the price of 25 kilograms of rice has risen from JPY450 to JPY2,500.

There are two main reasons for this price rise:
The first is that due to the War in Iraq, the crude oil agreements with neighbouring country Iraq have failed. Prior to the war, Jordan received oil from Iraq for half its original price in exchange for Jordanian food and basic needs (there is a more favourable climate in Jordan to grow food). However, during the war from 2003, Jordan was faced with no alternative but to import oil at standard prices from countries such as Saudi Arabia or Kuwait. Under the old agreement, one barrel of oil (159 litres) was US$14, but now the same amount costs US$141. Just like Japan, daily functions in Jordan depend on oil, and therefore this had a very large effect on Jordan.

July 10, 2008 in Iraq |