Kuwait – Mubasher: The consumer price index of Kuwait retreated to 2.9% year-on-year (y/y) in August, according to a recent report issued by the National Bank of Kuwait (NBK).
“Food inflation slid into negative territory in August as global food prices remained in decline. However, core inflation (excluding food costs) edged higher, from 3.5% y/y in July to 3.7% y/y in August as inflation in furnishings & household maintenance, clothing & footwear and ‘other goods & services’ gathered some momentum,” the report said.
NBK expects inflation in Kuwait to firm up by early September when the report will incorporate the recent increase in gasoline.
“We project an annual average inflation rate of 3.4% in 2016, a tick higher than the 3.3% reading in 2015,” NBK said.
Inflation in the furnishings & household segment was up to 3.0% y/y in August from 2.6% y/y in July.
Transportation costs decreased 1.9% y/y, unchanged from June’s reading. “We may see inflationary pressures in this segment rise in the short to medium-term as transport services readjust their prices/fares to reflect the fuel price hike that was imposed this September.”
NBK’s report added that inflation in services, excluding housing, stood pat at a relatively weak 1.6% y/y in August.
Inflation in services, which is mainly driven by housing rent inflation, remained unchanged at 5.1% y/y during the same month.
