Kuwait's annual headline inflation is on track to average close to 3.3 per cent in 2015, slightly higher than the three per cent annual average in 2014, said a report.

Inflation in consumer prices came in marginally lower in November, easing from 3.2 per cent year-on-year (y/y) in October to 3.1 per cent y/y, as inflation in most components was either unchanged or remained steady, according the National Bank of Kuwait (NBK).

Core inflation (which excludes food inflation) also eased slightly, from 2.9 per cent y/y to 2.8 per cent during the same period.

Meanwhile, the inflation in local food prices remained unchanged at 4.3 per cent y/y in November; global food prices remained in decline, stated the report.

According to the Commodity Research Bureau’s global commodity index, international food prices continued to fall, but at a slower rate of -8 per cent y/y. Upward pressures on local food inflation are poised to be limited in the near-to-medium term, against a backdrop of weak global food prices.

Inflation in housing services was unchanged from September’s 5.7 per cent y/y reading, said the report.

Inflation in this segment (primarily housing rent) witnessed strong gains over the past year, particularly in the fourth quarter of 2014 and the first quarter of last year.

It appears to have peaked in the second quarter of 2015 and is likely to subside over the following months.

Inflation in furnishings and household was slightly higher in November and clothing & footwear prices continued to fall, it added.-TradeArabia News Service