Kuwait’s annual consumer price index registered a 3.37 increase in December 2023, compared to the same period the previous year, driven by high prices in several major sectors.
The country’s monthly CPI also saw a rise of 0.3 percent in December compared to the previous month, according to a recent report by the nation’s Central Statistics Bureau.
The annual increase was led by a hike of 4.74 percent in the food and beverage group prices, along with a 6.72 percent increase in the cost of clothing and footwear.
The rise in food commodity rates is attributed to higher prices of cereals and bread, meat and poultry, fish and seafood, as well as dairy products.
Oils and fats, sugar, sugar products, and other food items also saw a price increase, whereas the prices of fresh, frozen, and dried fruits and vegetables decreased.
The CPI serves as a pivotal economic indicator, shedding light on Kuwait’s business condition and financial situation. According to the body, it is also an essential element for monitoring overall price movements in retail markets.
Thus, these changes have implications for consumers and businesses alike, highlighting the need for careful monitoring and effective inflation management strategies by policymakers.
“This indicator is used as a measure of the changes in the purchasing power of the currency and to determine the interest rates and liquidity by the Central Bank of Kuwait and to support the adoption of appropriate economic decisions by the official bodies as well as for the preparation of national accounts at constant prices,” the report stated.
To manage inflation, the central bank increased the discount rate by approximately 25 basis points to 4.25 percent in July last year, aligning with the US Federal Reserve’s decision to raise interest rates by a quarter of a percentage point.
At the time, the country’s central bank said in a statement that it wanted to remain supportive of economic growth, particularly in non-oil sectors.