Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Kuwait- Inflation steady at 2.9% in Feb seen edging 'higher' in 2014  Join our daily free Newsletter

MENAFN - Arab Times - 06/04/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab Times) Inflation in the consumer price index (CPI) stood at 2.9% y/y in February, unchanged from January. Inflation has now been in the 2.5 to 3.0% range for 11 months in a row, implying a fairly stable inflationary environment. 'Core' inflation remains lower than the headline rate, at 2.6%. But it is worth noting that the core measure has firmed up over the past 6 months, a possible sign that domestic price pressures - while still modest - are rising. Food price inflation fell slightly in February to 4.0% y/y, from 4.2% in January. Although food is an important item in the CPI 'basket', this move was not large enough to have a material impact on headline inflation. However, the broader decline in food price inflation from a peak of 6.3% y/y last May has been influential in keeping the overall inflation rate low: it has reduced headline inflation by 0.4% points since May. But note that the recent path of international food prices suggests that this decline may reverse over coming months



Inflation in the largest component of the CPI - rented housing - stood at 3.6% in February, unchanged from January. Changes in this component only appear once every 3 months, and since no change was scheduled for February, the figure was expected. As with food prices, however, the decline in housing rental inflation over the past few months has helped keep overall inflation down. Housing rental inflation has decelerated from a peak of 4.8% y/y last October, taking 0.4% points off the overall headline inflation rate. The relative softness of rental inflation is at odds with other evidence from the housing market, which shows activity at very solid levels



Three other major components of the CPI - clothing, furnishing and 'other goods & services' - continue to show strikingly divergent paths. Pressures in the clothing and furnishing components continued to accelerate sharply, and each has seen inflation rise by 3-4% points y/y over the past 6 months. This has been partially offset by plunging prices in the 'other' segment, partly on account of the falling price of gold jewelry. Most of the other CPI components saw little meaningful change between January and February



Although 'core' price pressures may have firmed up a little over the past few months, we do not see them rising very aggressively over the near to medium term. For a start, the recent rise has come from a very low base: excluding food and housing, core inflation bottomed out at 0.7% y/y last August, so even with the recent rise, current levels are still low. Moreover, the continued strengthening of the Kuwaiti dinar is helping to keep a lid on import prices. Perhaps linked to this, inflation at a wholesale level has also decelerated of late



Nevertheless, recent trends in the food, housing and 'core' segments point to some modest and broad-based acceleration in inflation this year. Inflation may now average closer to 3.5% in 2014 than the 3.0% previously forecast, and above the 2.7% seen last year. However, this is still a manageable level. Given the domestic authorities' growth-oriented priorities and the uncertain international environment, inflation is for now unlikely to register as a significant policy concern

 


Arab Times




  MENA News Headlines
 Nov 29 2014 - Emirates to fly A380 to 3 European, US routesMENAFN
(MENAFN) Emirates Airlines announced that it is placing the Airbus A380 onto three of its routes into the US and Europe as of next week, Gulf News reported.Emirates' existing daily Dubai to San ...

 Nov 29 2014 - Abu Dhabi Airport handles 1.68m passengers in OctoberMENAFN
(MENAFN) The number of passengers travelling through Abu Dhabi International Airport increased 17.4 percent to 1.68 million in October over a year earlier, Gulf News reported.The latest data released ...

 Nov 29 2014 - Lebanese 'giant of poetry' Said Aql dead at 102The Peninsula
(MENAFN - The Peninsula) Lebanese poet Said Aql, whose work was loved by Arab readers but who hated Arabism so much that he invented a latinised version of the Lebanese dialect, died yesterday aged ...

 Nov 29 2014 - Qatar- FIA Prize-giving ceremony to be held in new formatThe Peninsula
(MENAFN - The Peninsula) The prestigious annual FIA Prize-giving ceremony, which honours the achievements of all FIA champions over the past season, will be held here on December 5. This year's ...

 Nov 29 2014 - US- Eagles, Seahawks, Lions dominate on ThanksgivingThe Peninsula
(MENAFN - The Peninsula) Mark Sanchez threw for one touchdown and ran for another and the Philadelphia Eagles seized sole possession of first place with a 33-10 rout of the Dallas Cowboys on ...

 Nov 29 2014 - Tunisia- Anti-Israel protestThe Peninsula
(MENAFN - The Peninsula) Tunisian protesters burn Israeli flag during a rally to show their solidarity with Palestinians, in Tunis, yesterday. ...

 Nov 29 2014 - Bahrian- Show of solidarityThe Peninsula
(MENAFN - The Peninsula) Leading Shia clergyman Seyyed Mohammed AlGuraifi addressing crowds at an event expressing solidarity with Ayatollah Sheikh Isa Qassim (not pictured), Bahrain's top Shia ...

 Nov 29 2014 - Egypt crackdown adds to Gaza woesThe Peninsula
(MENAFN - The Peninsula) Already struggling under the weight of an Israeli blockade, Gazans are now feeling the effects of an Egyptian exclusion zone along their shared border that has sent prices ...

 Nov 29 2014 - Qatar- School celebrates Annual DayThe Peninsula
(MENAFN - The Peninsula) K C Abdul Latheef (left), President, Managing Committee, Shantiniketan Indian School, presents a memento to Dr Abdul Salam Ahmed, Managing Director, Media One, in the ...

 Nov 29 2014 - Qatar- Seasonal yards reopen on ThursdayThe Peninsula
(MENAFN - The Peninsula) Fresh vegetables will be available at prices 40 to 50 percent less than the market rates at the seasonal yards.The yards will sell vegetables, fruit, chicken, fish and ...

more...


 






Google

Click to Apply

 
 

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