Kuwait inflation down 3 percent in October
The inflation in the consumer price index (CPI) eased slightly to 3 percent year-on-year (y/y) in October, as inflation in most components slowed, showed a report by the National Bank of Kuwait (NBK).
“Core inflation eased slightly from 3.3 percent y/y in September to 3.1 percent y/y in October, as housing inflation remained unchanged and inflation in other major components decelerated,” reads the report.
It stated that the food inflation witnessed a marginal slowdown in October and is projected to continue to ease in the coming months in line with lower international food inflation.
“A stronger dinar is also expected to be helping keep domestic inflation under control. Inflationary pressures appear modest and headline inflation is seen ending 2014 at an annual average of 3.0 percent,” it added.
Inflation in the food price index eased slightly in October, from 2.7 percent y/y in September to 2.6 percent y/y. The pick-up in food inflation seen last month appears to have been short-lived. With international food price inflation witnessing a slowdown, local food inflation is also expected to remain subdued. This should limit the pressure on the overall inflation rate.
The data also showed that the inflation in housing services remained unchanged at 4.4 percent y/y in October.
“Changes in the inflation rate of this component are reported once every quarter, with the next report due in December. Inflation in this component is unlikely to see significant changes in the final quarter of 2014 and is projected to remain near current levels,” said the report.
The NBK noted that the inflation in both the clothing & footwear and furnishings & household maintenance components slipped in October. Clothing & footwear inflation slowed down from 2.3 percent y/y in September to 1.6 percent y/y in October.
Inflation in the furnishings & household maintenance component decelerated from 5.6 percent y/y in September to 5.0 percent y/y in October. Inflation in this component had jumped during the previous month, mostly following one-off rises in maintenance and domestic & household services costs.
Inflation in the ‘other goods and services’ segment, inched further on to positive turf in October. Inflation in this segment, which includes prices of items such as cosmetics and jewelry and certain business charges, saw a slight uptick in October, rising by 0.2 percent y/y. This segment is undergoing a major correction and it may be some time before it sees its inflation return to pre-2012 rates.
Source : KUNA Kuwait News agency