RIYADH: Kuwait’s consumer price index increased by 3.74 percent 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 percent in July, while four other groups, led by clothing and foot clothes, rose by 0.45 percent.
The annual increase was led by a 7.07 percent price hike in the clothing and footwear sector and a 5.79 percent 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 percent instead of 4 percent, in line with the decision of the US Federal Reserve 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 wants to remain supportive of economic growth, particularly in non-oil sectors.
Kuwait’s CPI reflects the country’s changes in the cost of living and carries implications for both businesses and consumers.
In June, CPI also recorded a 3.83 percent annual increase and a 0.54 percent month-on-month rise.
Food and beverage increased by 6.25 percent in April compared to the same month last year, while cigarettes and tobacco rose by slightly rose by 0.37 percent.
