Quotes: US 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
 Oct 1 2014 - GCC needs to produce dynamic non-oil sectorMENAFN
(MENAFN) According to the International Monetary Fund (IMF), in order to maintain sustainable growth, the Gulf Co-operation Council (GCC) countries have to produce a dynamic non-oil tradable sector ...

 Oct 1 2014 - Kuwait to host 23rd Gulf Cup of NationsArab Times
(MENAFN - Arab Times) KUWAIT CITY Sept 30 (KUNA): Kuwait will host the 23rd edition of the Gulf Cup of Nations Kuwait Football Association (KFA) Secretary General Saho Al-Saho said Tuesday. Al-Saho ...

 Oct 1 2014 - Abu Dhabi airport's passenger traffic up 24.8 percent in AugustMENAFN
(MENAFN) Abu Dhabi International Airport's passenger traffic increased by 24.8 percent in August compared to the same month last year, with a total of 1.920.934 passengers passing through the airport ...

 Oct 1 2014 - US Mondelez International to invest USD90m in plant in BahrainMENAFN
(MENAFN), the packaged food company, announced it is planning to build a USD90 million biscuit plant in Bahrain, which will help the company reduce costs and meet growing demand for its biscuits, ...

 Oct 1 2014 - Oman interested to invest in CyprusMENAFN
(MENAFN) Oman's Minister of Oil and Gas said that the country is very interested in investing in Cyprus, particularly in the field of research and exploitation of natural gas, Muscat Daily ...

 Oct 1 2014 - Emirates to launch new Dallas flightsMENAFN
(MENAFN) Emirates announced it has launched its first scheduled A380 daily service to Dallas Fort Worth International Airport, Gulf Business reported.The airline said it expects that the business ...

 Oct 1 2014 - Dubai Development Co. considering several offers of merger or acquisitionMENAFN
(MENAFN) Dubai Development Co, the company responsible for the Mirdif area of the emirate, announced it is considering several external offers of merger or acquisition, Arabian Business reported.The ...

 Oct 1 2014 - Etihad Rail starts on second phase of USD11bn UAE rail networkMENAFN
(MENAFN) Etihad Rail, the UAE's railway developer, announced it is set to secure government funding and award contracts for the construction of the second phase of its USD11 billion national rail ...

 Oct 1 2014 - Oman Sail teams upbeat over ESS Act 7 challengeMuscat Daily
(MENAFN - Muscat Daily) As the 2014 Extreme Sailing Series (ESS) gears up for Act 7 in Nice France to be held later this week Oman Sail's teams on The Wave Muscat and Oman Air are relishing the ...

 Oct 1 2014 - Oman settles for seventh place in Asiad hockeyMuscat Daily
(MENAFN - Muscat Daily) Basim Khatar struck the winner for Oman as it rallied from a goal down to defeat Bangladesh 3-2 in a playoff and clinch the seventh place in hockey in the 17th Asian Games at ...

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

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

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
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

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


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help