Monday 18 June 2018

Kuwait April inflation at 4-month low

Kuwait, May 31, 2012

Kuwait's annual inflation eased to a four-month low of 3.3 percent in April and prices fell on a monthly basis for the first time in more than a year due to a drop in food prices, state news agency Kuna's data showed on Thursday.

Inflation in the major oil exporter edged up to 4.1 percent in March after easing gradually from a peak of 5.4 percent in May 2011.         

Consumer prices in the Opec member's $177 billion economy contracted 0.6 percent month-on-month in April, compared to a 0.8 percent rise in March, Kuna said citing data from the Central Statistics Office.   

Analysts polled by Reuters in March expected average inflation of 4.5 percent in 2012, down from a three-year high of 4.8 percent last year.

Food costs, which account for almost a fifth of Kuwait consumer expenses, fell by 2.6 percent month-on-month in April, back down to February's levels after a similar jump in March.Transport prices edged up 0.2 percent from the previous month.

Around 3,000 Kuwaiti customs workers went on a week-long strike in March, which disrupted traffic at ports, demanding salary increases despite the government plan for a 25 percent rise in public wages. Employees at national carrier Kuwait Airways grounded planes for three days during a walkout.

Kuwait's civil service commission eventually agreed to wage rises of 25 to 30 percent for public sector employees. It also proposed increases of up to 330 Kuwaiti dinars ($1,190) per month for Kuwaiti private sector workers.

While the country's oil wealth enables it to absorb a spike in earnings in the short term, policymakers and economists warn price pressures will mount if settlements do not moderate. Most Kuwaitis work for the state in well-paid secure jobs.
Around two-thirds of Kuwait's roughly 3 million inhabitants are foreigners. - Reuters  

Tags: inflation | Kuwait | Food prices |

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