Raad Mahmoud Al-Tal

Every year, people ask the same question: why do prices keep going up? Is it just a short-term rise, or is it part of a long-term trend that slowly affects our living standards? To understand this, we need to separate how we feel about rising prices from what economists call inflation.

Inflation is when prices of goods and services rise in general over time. This doesn’t happen randomly. Some reasons are global, like higher energy prices, supply problems, or changes in food prices. Other reasons are local, like taxes, transport costs, weak competition, or higher demand than supply.

In Jordan, inflation is measured using a “basket of goods” tracked by the Department of Statistics. This basket includes things families usually buy, like food, housing, transport, education, healthcare, water, and electricity. When the average prices of these items go up, inflation is reported.

But this basket shows the average, not each family’s real situation. Each family spends differently. A family spending more on education feels price increases in school fees more, while a family that uses public transport feels higher transport costs more. So the official inflation number might not feel the same for everyone.

To see if inflation affects you personally, compare your current monthly spending with the same month last year for the same goods. If your bills go up but your living standard doesn’t, that’s real inflation hitting your household.

Managing your money is key. Start by listing your total income and tracking all your spending for at least a month. Then divide spending into essentials and non-essentials. Essentials include housing, food, medicine, education, and transport. Non-essentials are luxuries, impulse buys, and unused subscriptions.

A common mistake is spending without planning, relying too much on credit cards, or giving in to social pressure. Weddings, celebrations, and showing off can cost more than a family can afford, sometimes leading to borrowing just to keep appearances.

Many people say, “I can’t save because my salary isn’t enough.” Sometimes that’s true, but often it’s about planning. Saving doesn’t need to be big just a habit. Even a small amount each month matters if you save before spending. To protect savings from inflation, don’t leave money sitting idle. Put it in safe options that give some return to keep up with rising prices.

Every year, people ask if prices really rise during Ramadan. Food demand goes up in this month, sometimes 25–30% more than other months, which can make some prices rise. But not all increases are real shortages. Often, it’s because people buy more. To check, compare prices before and during Ramadan instead of just going by impressions.

Families can protect themselves from rising prices by planning their shopping, sticking to a clear list, comparing prices, and keeping a budget. Fighting inflation isn’t only the government’s job or only the family’s job. It’s a shared effort: fair economic policies and smart family spending. The real challenge isn’t just prices going up it’s how we adapt wisely to a changing economy.