Make MENAFN My Home Page
 
  Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Kuwait Inflation Dips In October, Projected To Reach 2.6 Pct In '13  Join our daily free Newsletter

MENAFN - Arab Times - 07/12/2013
No. of Ratings : 0
Add to Mixx!


(MENAFN - Arab Times) Inflation in the consumer price index (CPI) fell to 2.7% y/y in October, down from 2.9% in September. (Chart 1.) The performances of the individual components varied, though a further deceleration in food price inflation was among the key movements through the month. Despite robust consumer spending and some improvement in business sentiment, inflation is on track to average a modest 2.6% in 2013 - its lowest since 2004. A small acceleration is seen in 2014.

Food price inflation fell to 3.5% y/y from 4.5% in September, its fifth consecutive monthly decline. (Chart 2.) Given the component's large weighting in the CPI (18%), this move subtracted some 0.2% points from the overall inflation rate in October. Indeed, the decline in food price inflation over the past five months has more than accounted for the deceleration in inflation overall through the period. In aggregate, other components have gone the other way. Softer food price inflation has been driven by weakness in the fresh fish component.

In addition to food, the 'other goods & services' category contributed to the decline in inflation. Inflation in the segment fell from 0.4% y/y in September to -0.4% in October, its first negative rate since 2007. (Chart 3.) The move took 0.1% points off the overall inflation rate. This component - which includes cosmetics, jewelry and certain business charges, amongst other things - can be volatile. Its precipitous decline from a peak of 6.3% y/y in November 2012 has been driven by a base effect: a surge in the price of gold jewelry in mid-2012 whih has now fallen out of the annual comparison.


Separately, deflation in the clothing & footwear segment intensified to -0.8% y/y, from -0.6% in September. But the change was not large enough to have a noticeable effect on the overall inflation rate. Along with the 'other goods & services' segment mentioned above, the dramatic decline in inflation in this segment over the past year has been key to reducing inflation overall. Taken together, these two components have reduced the headline inflation rate by 0.9% points over the past year, helping to keep 'core' (i.e. excluding food) inflation - now at 2.5% - low.

On the upside, there were significant increases in inflation in the 'furnishing & household maintenance' and 'recreation & culture' segments. Each added 0.1% points to the y/y inflation rate in October. Housing rent inflation was unchanged at 4.8% y/y in the month. But it is up significantly over the past year and is easily the largest source of upward pressure on the inflation rate overall. Other components were - for the most part - unchanged in October.

Going forward, inflation is expected to remain contained, though start to drift higher early next year. Over the next couple of months, inflation could actually fall as a result of a base effect-driven fall in housing rent inflation. But this effect will be temporary. Increases through next year should be tempered by a combination of modest international food price rises, soft import price pressures, and moderate economic growth. We look for inflation to average 3.0% in 2014, from 2.6% this year.

 
 


Arab Times




Qatar- Private sector defeats siege in July, ,8/24/2017 6:21:09 AM



(MENAFN - The Peninsula) The Peninsula Qatar's non-oil exports reached the pre-blockade levels in July proving the success of the country's private sector in bypassing the siege. The total value ...


Global Melamine (Cas 108-78-1) Market 2017-OCI, Borealis, INEOS, Mitsui Chemicals, Shandong Sanhe Chemcals, ,8/24/2017 6:10:19 AM



(MENAFN Editorial) iCrowdNewswire - Aug 23, 2017 The Report describe Melamine (Cas 108-78-1) Introduction, product scope, market overview, opportunities, risk, driving force also to analyze the ...


Global Crystalline Fructose Market 2017 - ADM, Hebei Huaxu, DANISCO, Tate & Lyle, TAT Nisasta, ,8/24/2017 6:10:21 AM



(MENAFN Editorial) iCrowdNewswire - Aug 23, 2017 Global Market 2017, presents a professional and in-depth study on the current state of the Crystalline Fructose market globally, providing basic ...


Análise de Previsão de Crescimento do Mercado de Fibra Natural por Fabricantes, Regiões, Tipo e Aplicação para 2021, ,8/24/2017 6:10:23 AM



(MENAFN Editorial) iCrowdNewswire - Aug 23, 2017 O Relatório do Mercado de Fibras Naturais cobre o cenário atual e as perspectivas de crescimento da Indústria de Fibras ...


Electric Hair Clipper Worldwide Market Rising Trends and New Technologies Research 2017 to 2022, ,8/24/2017 6:10:25 AM



(MENAFN Editorial) iCrowdNewswire - Aug 23, 2017 A new research document with title ‘Global Electric Hair Clipper Sales Market Report 2017 ‘covering detailed analysis, Competitive ...


Emergency Spill Response Worldwide Market Rising Trends and New Technologies Research 2017 to 2022, ,8/24/2017 6:10:26 AM



(MENAFN Editorial) iCrowdNewswire - Aug 23, 2017 A new research document with title ‘Global Emergency Spill Response Sales Market Report 2017 ‘covering detailed analysis, Competitive ...


Global Telehealth Market Become Dominant At CAGR Of 30.1% By 2022, ,8/24/2017 6:10:27 AM



(MENAFN Editorial) iCrowdNewswire - Aug 23, 2017 Zion Market Research has published a new report titled 'Telehealth Market by Component Type (Hardware, Software, and Services), by Mode of Delivery ...


Global Jet Fuel Additives Market 2017 Fabricantes Shell, BASF, Innospec, ,8/24/2017 6:10:28 AM



(MENAFN Editorial) iCrowdNewswire - Aug 23, 2017 Global Jet Fuel Additives competencia en el mercado por parte de los principales fabricantes, con producción, precio, ingresos (valor) y ...


El maquillaje global cepilla el mercado 2017 por los fabricantes Shiseido, casa del Etude, L% u2019Oreal, ,8/24/2017 6:10:29 AM



(MENAFN Editorial) iCrowdNewswire - Aug 23, 2017 Global Makeup Brushes mercado de la competencia por los principales fabricantes, con la producción, precio, ingresos (valor) y cuota de ...


Color selection machine Worldwide Market Report 2017 sharing Market Cost Structure & Future Demands with key players Satake, Buhler, Anzai, ,8/24/2017 6:10:31 AM



(MENAFN Editorial) iCrowdNewswire - Aug 23, 2017 A new research document with title ‘Global Color selection machine Sales Market Report 2017 ‘covering detailed analysis, Competitive ...




 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help