The IMF might have reached a different conclusion if its mission had taken place in late January. Jordan's parliament had not even managed to debate its provisions before political events were blowing major holes in the government's spending expectations. In late December following the regular monthly review of energy prices, the government announced a rise in petrol, diesel and kerosene prices, and food prices had been increasing as well. As the trouble in Tunisia and Egypt continued, King Abdullah was clearly not willing to take any chances that it would spread to Jordan, and he told the government to take steps to bring the cost of living down. On January 12th the cabinet announced a package of measures that included the cancellation of a special sales tax of 6% imposed on kerosene and diesel, and a reduction in the tax on 90-octane petrol from 18% to 12%. The government also promised JD20m to hold down the price of essential commodities such as sugar, rice and frozen poultry. It allocated a further JD20m to support income-generating projects in poor areas starting from February.

The government also decided to ease conditions for hiring in the education, health and social development ministries to allow holders of two year diplomas from disadvantaged areas to obtain jobs, although it did not say how many jobs would become available. When he unveiled the new measures Mr Abu Hammour said they would cost JD160m in 2011 but would not affect the deficit as the government would reset its spending priorities.

On January 21st the government announced a new package of measures, including a JD20 a month salary increase for public sector employees, members of the armed forces and pensioners that will in total cost JD160m annually. In addition the government committed itself to maintaining a subsidy on gas cylinders at an annual cost of JD100m and on fodder at a further JD40m. The interest rate on loans extended by the Agricultural Credit Corporation was reduced by 1% for loans of JD10,000 and over, while the government promised there would be no increased electricity tariffs in 2011.

With this in mind, it was hardly surprising that fuel prices were left unchanged when the regular monthly review of prices was carried out in late January. The Petra news agency reported that prices would remain at their current levels at least until March 3rd, despite the fact that the cost of oil derivatives had risen by between 3.8% and 4.9% during the previous month in response to rising global oil prices. The Finance Ministry of Finance will have to find JD6m needed to cover the increase.