Food, services drive February inflation to 2.49% in Kuwait
KUWAIT CITY, March 26: Kuwait's inflation rate remained steady at 2.49% in February, with notable year-on-year increases in food and service prices, according to the latest data from the Central Statistical Bureau. This figure was in line with the 2.5% inflation seen in both January and December.
In February, the consumer price index (CPI) reached 135.7, reflecting continued price increases across several major expenditure categories. While the overall inflation rate remained moderate, certain sectors experienced significant annual cost hikes.
The food and beverage sector recorded a 5.23% year-on-year increase, while the clothing and footwear sector saw a 4.63% surge. Prices in the miscellaneous goods and services sector rose by 5.46%, driven largely by higher costs for personal goods and services. Healthcare costs also saw a notable increase of 4.08%, and the furnishing and household maintenance sector rose by 3.04%.
Kuwait's inflation trends align closely with those of other Gulf Cooperation Council (GCC) countries. Saudi Arabia's inflation remained steady at 2% year-on-year in February, mainly driven by an 8.5% rise in housing rents. In contrast, Oman recorded a milder 1% annual inflation increase in February, with a 6.3% rise in the personal goods and miscellaneous services sector.
The Central Statistical Bureau's report highlighted price trends across various expenditure groups, providing insight into the movement of key categories within the CPI. Despite overall inflation remaining relatively stable, Kuwait's housing services sector showed minimal movement, rising just 0.90% annually and remaining unchanged month-on-month.
Transportation prices declined by 1.19% year-on-year but saw a slight monthly uptick of 0.07%. The communication sector experienced a slight annual increase of 0.88%, while the recreation and culture sector rose by 2.48%. Education costs saw a modest 0.71% increase, and the restaurants and hotels sector recorded a 2.03% rise compared to February 2024.
The report also revealed that the total index, excluding food, rose by 1.93% annually, while the total index, excluding housing, increased by 3.13%. These figures suggest that inflationary pressures are mainly driven by non-housing-related expenses.
Kuwait's economy continues to recover in its non-oil sector, supported by easing inflation. The country's non-oil exports rose to 23.2 million dinars ($74.9 million) in December, marking a 12.08% month-on-month increase, according to the Ministry of Commerce and Industry.
In its latest consultation with Kuwait in December, the International Monetary Fund (IMF) highlighted the recovery of the non-oil sector amid easing inflation. However, the IMF also noted a 1.5% contraction in GDP for the second quarter of 2024, driven by a 6.8% drop in the oil sector.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Kuwait Times
01-06-2025
- Kuwait Times
Crown Prince hails Japan visit
Crown Prince hails Japan visit Sheikh Sabah Al-Khaled thanks leadership, visits Osaka Expo 2025 TOKYO/KUWAIT: HH the Crown Prince Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah departed on Saturday from Osaka and arrived in Kuwait following an official visit to Japan. HH the Crown Prince sent a thank-you message to Japanese Emperor Naruhito, expressing his gratitude for the warm reception during his official visit to Japan and thanking him on behalf of himself and his delegation. He highlighted that this warm welcome reflects the strong historic ties between the two countries, nurtured by HH the Amir of Kuwait Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah. HH the Crown Prince also appreciated the positive Kuwaiti-Japanese discussions on mutual interests and emphasized the importance of expanding cooperation to elevate bilateral relations, benefiting both nations and addressing global challenges. HH the Crown Prince also sent messages of thanks to Japanese Crown Prince Fumihito and Prime Minister Shigeru Ishiba. On Friday, HH the Crown Prince Sheikh Sabah Al-Khaled visited the Osaka Expo 2025. He and his entourage were accompanied by Kuwait's Minister of Information and Culture and Minister of State for Youth Affairs Abdulrahman Al-Mutairi, Minister of Foreign Affairs Abdullah Al-Yahya and organizers of the Kuwait pavilion at the world expo. HH the Crown Prince started his tour of the expo with a visit to the pavilion of the hosts, where the Japanese officials briefed him on the exhibits that reflect their history, culture and civilization. He then proceeded to the pavilions of Gulf Cooperation Council members, namely Saudi Arabia, Oman, Qatar, UAE, Bahrain and Kuwait. At the Kuwait pavilion, the organizers offered him a presentation of the dazzling displays which reflect Kuwait's heritage and cultural identity, as well as the national achievements in the areas of economy, energy, environment and education. HH the Crown Prince praised the neat organization of the pavilion, saying it offered a bright picture that mirrors Kuwait's eminent status on regional and international levels. HH the Crown Prince later attended a dinner banquet hosted in his honor by Al-Mutairi at the Kuwait pavilion. – KUNA
Arab Times
31-05-2025
- Arab Times
From Dubai to Doha to Kuwait: Where Do Expats Save the Most? The Answer May Surprise You
KUWAIT CITY, May 31: The Gulf Cooperation Council (GCC) nations—comprising Saudi Arabia, the UAE, Kuwait, Qatar, Oman, and Bahrain—have long been magnets for expatriates seeking tax-free income and better financial prospects. But when it comes to actual savings potential, not all GCC countries offer the same return on effort. GCC: A Remittance Powerhouse for Expats In 2024, the Gulf Cooperation Council (GCC) countries continued to be significant sources of global remittances. Saudi Arabia experienced a notable increase, with expatriate remittances reaching SR144.2 billion ($38.45 billion), marking a 14% rise from the previous year and the highest in three years. Conversely, the United Arab Emirates saw a slight decline in remittance outflows, totaling $38.5 billion, a nearly 3% decrease from 2023. Savings vs Cost While UAE and Saudi Arabia boast massive expat populations and robust economies, the high cost of living in cities like Dubai, Abu Dhabi, and increasingly, Riyadh, can significantly erode disposable income. Smaller GCC nations like Kuwait and Oman, while sending lower total remittances, may provide expats with greater per-capita savings opportunities. Top Contenders for Expat Savings 1. Kuwait: The Silent Saver Kuwait stands out for its mix of high, tax-free salaries (especially in oil, healthcare, and engineering sectors) and a relatively lower cost of living compared to the likes of the UAE or Qatar. International studies such as Mercer's Cost of Living Survey have repeatedly placed Kuwait as one of the more affordable GCC nations for expats, particularly when it comes to housing outside prime areas. This favorable balance allows many expats, particularly from India, Egypt, Bangladesh, the Philippines, and Pakistan, to remit substantial portions of their income. For many, Kuwait's restrained entertainment and lifestyle options actually encourage stronger saving discipline. 2. Oman: Affordability Meets Quality of Life Oman consistently ranks as the most cost-effective GCC nation, according to recent indices like Numbeo's 2025 World Cost of Living Index. While salaries may be lower than in Qatar or the UAE, the drastically reduced living expenses, especially for rent and daily necessities, mean expats can still save significantly, especially if they avoid lifestyle inflation. Additionally, Oman is praised for offering a high quality of life, safety, and a calmer environment—factors that also contribute to a more budget-conscious lifestyle. 3. Bahrain: Balanced and Budget-Friendly Though often overshadowed by its larger neighbors, Bahrain punches above its weight with a strong financial sector, moderate salaries, and a noticeably lower cost of living. Remittance data reveals consistent growth. In the first nine months of 2024, foreign workers in Bahrain remitted a total of BD 726.9 million, marking a 1.1% decrease compared to the same period in 2023. This dip occurred despite a growing expatriate workforce, which surpassed 631,000 by mid-2024. Factors such as global economic uncertainties and rising living costs may have influenced this trend, according to Gulf Press. For expats working in finance or industry and living frugally, Bahrain presents a compelling savings environment. Bahrain's remittance landscape in 2024 presents a nuanced picture. While overall remittance outflows experienced a slight decline, the nation's financial sector remains robust, offering expatriates a conducive environment for savings. Countries with High Salaries, But Hidden Pitfalls UAE and Qatar regularly rank among the top for gross salaries. Dubai and Doha attract professionals in finance, tech, and real estate with lucrative packages. However, high living costs—especially in housing, schooling, and entertainment—often neutralize those advantages. Without disciplined budgeting, many expats find their high earnings quickly consumed. Saudi Arabia, once a haven for savings, is undergoing rapid transformation under Vision 2030. While opportunities and salaries have increased, especially in construction, engineering, and management, the cost of living in Riyadh and Jeddah is climbing just as fast. Reports even suggest that in some cases, rents and school fees now rival or surpass those in Dubai. The Role of Nationality and Sector Expat income and savings potential vary widely depending on profession and nationality. Western expats in senior roles often earn significantly more than their South Asian or Arab counterparts in similar positions. Fields like oil & gas, healthcare, and IT offer the highest disposable income across all GCC countries. The GCC's Best Bet for Savers If maximizing savings is the goal, Kuwait, Oman, and Bahrain emerge as the most favorable destinations for expats. These countries strike the right balance between competitive salaries and manageable living costs. The UAE, Qatar, and Saudi Arabia continue to offer unmatched opportunities for career advancement and high incomes, but expats must navigate rising expenses carefully. At the end of the day, savings in the GCC aren't just about how much you earn—it's about how much you keep.
Arab Times
28-05-2025
- Arab Times
Visa-Free China: GCC Nationals Can Now Visit with Ease
KUWAIT CITY, May 28: China will implement a visa-free policy for ordinary passport holders from Saudi Arabia, Oman, Kuwait and Bahrain from June 9, 2025, to June 8, 2026, Chinese Foreign Ministry spokesperson Mao Ning said on Wednesday. Ordinary passport holders from the four countries can be exempted from requiring visas to enter China and stay for up to 30 days for business, tourism, family visits, exchanges, and transit purposes. Together with the United Arab Emirates and Qatar, which were granted visa exemptions in 2018, this extends full visa-free coverage for the Gulf Cooperation Council (GCC) countries, according to Mao.
