Kuwait: Inflation declines to lowest level since August 2021 in March
Inflation came in at 3.0% in March, down from February’s 3.4%. March’s reading represented the weakest inflation rate since August 2021. The deceleration was due to lower price rises for transport plus housing and utilities. In contrast, food inflation accelerated and remained higher than general inflation, which has been the case since May 2020.
Annual average inflation was unchanged at February’s 3.6% in March.
Lastly, consumer prices rose 0.38% in March over the previous month, picking up from February’s 0.23% rise. March’s uptick marked the highest reading since October 2023.
Analysts at EIU said:
“We expect inflation to ease from an estimated 3.7% in 2023 to an average of 2.4% in 2024-25 as global commodity prices fall and interest rates remain elevated until at least mid-2024, stifling consumer spending. Price controls and other subsidies for essential goods will also keep a lid on inflation during this time, although upward price pressure will be sustained by high housing costs as supply growth remains sluggish. Inflation will spike in 2026, to 3.1%, following the assumed introduction of VAT, but will fall again for the remainder of the forecast period, largely owing to base effects.”