Rise in Kuwait’s CPI

Kuwait’s consumer price index increased by 3.74% in July 2023 compared to the same period last year, driven by high prices across multiple sectors. This rise was despite the monthly stabilization of prices. The general CPI remained stable at 130.1 in July, according to a report from the country’s Central Statistical Bureau.

On a monthly basis, the food and beverage group fell by 0.14% in July, while four other groups, led by clothing and foot clothes, rose by 0.45%. The annual increase was led by a 7.07% price rise in the clothing and footwear sector and a 5.79% gain in the food and beverage sector.

These changes have implications for consumers and businesses alike, highlighting the need for careful monitoring and effective inflation management strategies by policymakers. “The consumer price index is one of the most important economic indicators to follow up the business condition and the economic situation in Kuwait. This indicator is also an essential element to follow the overall price movements in retail markets,” the report stated.

In order to control inflation rates, the Central Bank raised the discount rate in July by about 25 basis points to 4.25%. In June, CPI also recorded a 3.83% annual increase and a 0.54% month-on-month rise. Food and beverage increased by 6.25% in April compared to the same month last year, while cigarettes and tobacco rose slightly by 0.37%.