Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Kuwiat- Inflation Falls To 2.6 Pct In Nov On Weaker Food Price Pressures  Join our daily free Newsletter

MENAFN - Arab Times - 12/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab Times) Inflation in the consumer price index (CPI) edged down to 2.6% y/y in November, from 2.7% in October. This small move masked some notable changes within the sub-components: another sharp fall in food price inflation was almost offset by a rise in 'core' price pressures. Going forward, we expect core pressures to continue to edge higher. But the overall inflation rate is still forecast to average a modest 3.0% through 2014, up from 2.6% in 2013. Food price inflation fell to 2.4% y/y from 3.5% in October, its sixth consecutive monthly decline. Given the component's large weight in the CPI (18%), this move subtracted some 0.2% points from the overall inflation rate in November. Food price inflation has fallen from a peak of 6.3% y/y in May, more than accounting for the deceleration in inflation overall over the period. Though driven by softer international food prices, the decline in CPI food price inflation has been sharper than the historical relationship would suggest



On the other side, 'core' inflation (i.e. excluding food) rose to 2.7% y/y from 2.5% in October, but the underlying picture was also mixed. The figure was heavily affected by a sharp rise in inflation in the clothing and footwear segment, which jumped to 1.4% y/y from -0.8% in October. Excluding this, 'core' inflation would have been unchanged. The increase was driven by a combination of a strong year-on-year base effect, and a sizeable 0.7% m/m rise in November 2013. Still, clothing inflation was very weak through 2013, and remains well below its average of 5% y/y or so of previous years



The inflationary impact on the 'core' segment, however, was partially mitigated by an intensification of deflation in the 'other goods & services' component, to -1.7% y/y from -0.5% in October. The turnaround in inflation in this category has been precipitous: it stood at 6.3% y/y in November 2012. The decline - and ultimate reversal - of price pressures in the segment has been driven largely by a base effect generated by the price of jewelry. Jewelry prices (mostly gold) surged in mid-2012, but those increases have since fallen out of the annual comparison. Prices have indeed edged lower



Elsewhere, inflation in the housing services component (largely rents) remained relatively high, at 4.7% y/y. Indeed, they have picked up considerably over the past year, rising from a low of 1.0% y/y in November 2012. Price changes in this segment are only surveyed once every three months, and the next change is due in the December data. December 2012 saw a sharp 3.2% m/m jump, so a more modest increase this time around would see the y/y rate fall quite sharply. Given the housing component's large weighting in the CPI, this could provide the context for a meaningful near-term decline in the overall headline inflation rate. Any such effect, however, is likely to prove temporary. We see inflation edging higher through 2014 and perhaps crossing the 3.0% y/y mark around mid-year, as some of the factors - such as soft food prices and other base effects - that have been keeping inflation low start to unwind. Nevertheless, with economic growth still moderate and regional price pressures muted, inflation is unlikely to rise too far over the medium-term

 


Arab Times




  MENA News Headlines
 Mar 5 2015 - Saudi, South Korea consider trade expansionMENAFN
(MENAFN) South Korean President announced that Korea and Saudi must try to diversify commercial cooperation with an emphasis on nuclear energy, renewable energy, education and health care, Arab News ...

 Mar 5 2015 - Etisalat plans to invest USD1.08b in 2015MENAFN
(MENAFN) Emirates Telecommunications Corporation, also known as etisalat, is planning to invest USD952.7 to USD1.08 billion this year on its infrastructure, fiber optic and 4G networks as well as to ...

 Mar 5 2015 - Qatar seeks 7 percent growth in 2015 despite oil plungeMENAFN
(MENAFN) Qatar's economy is expected to grow 7 percent in 2015, as it forges ahead with huge infrastructure investment despite the drop in oil prices, leading economist said.The figure compares with ...

 Mar 5 2015 - French Assystem acquires 75 percent in Saudi RadiconMENAFN
(MENAFN) Assystem completed the acquisition of 75 percent stake in the Saudi Radicon Gulf Consult (Radicon) to create a new engineering offer in the Saudi market nominated Assystem Radicon, Saudi ...

 Mar 5 2015 - Dutch Vopak to expand Fujairah oil storage capacity in 2015MENAFN
(MENAFN) Dutch Vopak is set to build five crude oil storage tanks with total capacity of 478,000 cubic meters at the port of Fujairah in the UAE, Reuters reported.Vopak is already in a partnership ...

 Mar 5 2015 - Saudi Kingdom Holding signs MoU with Korean Investment CorporationMENAFN
(MENAFN) Riyadh-based Kingdom Holding Company (KHC), signed an MoU with Korea Investment Corporation (KIC), Saudi Gazette reported.The MoU is set at producing more opportunities in private equity ...

 Mar 5 2015 - UAE to grant USD2b loan to CroatiaMENAFN
(MENAFN) Croatia is considering a USD2 billion loan from the UAE to help financing its current debt and reestablishing its collapsed economy, Arabian Business reported.Successive governments have ...

 Mar 5 2015 - UAE's Etisalat launches local search engine in 2015MENAFN
(MENAFN) UAE's Etisalat launched a UAE-specific search engine, nominated Connect.ae, which is the first in the country and it is labelled as a fully-digital and multiplatform search service, Emirates ...

 Mar 5 2015 - Bahraini Bapco, EMC sign agreementMENAFN
(MENAFN) Bapco and US-based EMC signed an agreement through which the Bahraini company gets a centralized, tapeless backup environment using EMC's 'next generation data protection solutions', Gulf ...

 Mar 5 2015 - Bahraini Batelco Group, Canadian Star Solutions sign partnership agreementMENAFN
(MENAFM) Batelco Group signed an agreement with Star Solutions in which the Canadian company is set to implement GSM/LTE mobile networks for Batelco Group's operations in the South Atlantic region, ...

more...


 






Google

Arab Advisors_12th convergence conf

 
 

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

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

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