Mubasher: The inflation rate in Kuwait is expected to decline to 1.5% in 2017 compared to 3.5% in 2016, according to a report issued by the National Bank of Kuwait (NBK) on Wednesday.
In August, the consumer price inflation rate in Kuwait eased to a new multi-year decline of 1.2%, dragged by deflationary pressures from the housing component and weak food inflation, the NBK’s report said.
“Core inflation, which excludes housing rent and food costs, remained more pronounced at 4.2% year-on-year (y/y), primarily due to the direct and indirect effects of the fuel price hikes imposed in September 2016,’ the report added.
Higher tariffs imposed on electricity and water on the apartment sector in August are forecast to apply upward pressures in the coming months.
Such pressures are likely to be partially trimmed by deflationary rates in housing rent, soft food inflation, and fading price growth in the transportation sector.
