Food prices have risen and the International Monetary Fund (IMF) projects inflation of nine per cent in 2008, up from 5.4 per cent last year.
"People's patience has limits, and I think that in the coming days there will be an explosion, a very big explosion, and nobody can predict its repercussions or results," Zaki Bani Rsheid, secretary general of the IAF, told AFP.
"The authorities are addressing the issue of rising prices in insufficient ways. They are not solving the root of the problem."
Prices in Jordan have risen sharply this year, with the cost of domestic fuel up by 76.1 per cent since January and electricity prices up by as much as 38 per cent.
On Tuesday, inmates at a prison north of the Jordanian capital Amman set fire to their cells, a day after three rioting prisoners at another jail died during clashes with security forces.
The riots began after wardens tried to segregate the prisoners according to the crime they had committed, in line with new regulations.
"They were showing solidarity with inmates who rioted on Monday at al- Muwaqar prison, but police tackled the situation and evacuated the inmates from the cells for their own safety."
In March 2006, inmates at the jail, as well as the Juweideh prison south of Amman, rioted over conditions.
An official said the three killed in al-Muwaqar prison died from inhaling smoke after rioters set fire to mattresses. Dozens of wounded inmates were transferred to government hospitals.
Hassan Shobaki, Al Jazeera's correspondent in Amman, said on Tuesday that the two-day unrest had ended after a psychiatrists and sociologists persuaded the inmates to end their protests.
Prisons in Jordan have seen a number of protests by inmates complaining about poor conditions and ill treatment.
"Our clothes ... they have not changed them for three months," said Abu Musleh.