The inflation rate in Kuwait recorded an increase last December reaching 3.37 percent. Official government data revealed that the Consumer Price Index (CPI) in Kuwait showed an annual increase of 3.37 percent in December 2023.
According to a statement from the Central Statistics Bureau (CSB), the inflation rate reached 131.9 points last month, compared to 127.6 points in December 2022. Monthly, the statement revealed that the Consumer Price Index rose by 0.30 percent in December.
In numbers
According to CSB, food and beverage prices recorded a 4.47 percent annual increase. That is a result of the increase in the prices of the grain and bread, and the meat and poultry categories. Moreover, the prices of the clothing and footwear category also recorded an increase of 6.72 percent. Meanwhile, prices for the housing category witnessed a 3.40 percent increase, and prices for the health category increased by 2.65 percent.
As per CSB, the annual inflation rate in Kuwait slowed last September to 3.73 percent from 3.82 percent in August.
In September, prices in the clothing and footwear category witnessed an annual increase of 7.10 percent. Meanwhile, food and beverage prices increased by 5.68 percent. Moreover, the entertainment and culture sector witnessed a 3.14 percent price increase, and restaurants and hotels saw a 3.54 percent increase.
Monthly, the inflation rate recorded a 0.31 percent increase in September, according to the statement.
Annual inflation in August
According to CSB, the inflation rate in Kuwait increased by 3.82 percent in August 2023 compared to August 2022. The CPI recorded an increase of 0.15 percent, reaching 130.3. This is due to price increases in some major categories and decreases in others, which affected the fluctuation of indices.
In August 2023, the food and beverages category saw a 5.70 percent annual increase in prices compared to the same period in 2022. In addition, the prices of the cigarettes and tobacco category saw a 0.30 percent increase.
The clothing and footwear category recorded a significant annual price increase of 6.97 percent. Meanwhile, the housing category saw an increase of 3.23 percent.
The home furniture category saw a 2.59 percent jump in prices, as reported by the United Nations Security Council. Moreover, the prices of the health category saw an increase of 2.60 percent.
Read: Dubai maintains economic momentum with 3.3 percent GDP growth in first 9 months of 2023
Economic recovery
Earlier, the World Bank stated that Kuwait emerged from a two-year recession in 2021. The country witnessed a 2.3 percent growth in real gross domestic product (GDP). This growth follows a significant contraction of 8.9 percent in 2020, which was mainly due to the impact of the COVID-19 pandemic.
According to the Oxford Business Group report, Kuwait 2022, the country is on the verge of achieving significant economic diversification. In addition, its efforts will lead to a change in public policies and the implementation of a series of infrastructure projects.
Due to increased oil revenues and increased economic activity following the COVID-19 pandemic, Kuwait was able to reduce its budget deficit for the 2021/2022 fiscal year. Hence, it recorded GDP growth at a rate of more than 8 percent in 2022, which reflects a strong recovery after a contraction in growth by about 8.9 percent in 2020 due to the pandemic.
The country has a project pipeline worth more than $170 billion across various sectors, from oil and gas to innovation-driven information and communication technology.
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