KUWAIT: Data from the Central Statistics Department showed that the Consumer Price Index in Kuwait increased by 73.3 percent last September on an annual basis. Statistics said in a statement to the Kuwaiti news agency (KUNA) on Sunday that the inflation rate in Kuwait rose in September by 31.0 percent on a monthly basis compared to last August.
The increase in inflation on an annual basis came due to an increase in the prices of all the main groups affecting the movement of indices, especially food, education and clothing. She stated that the index of the first group (food and beverages) increased last September by 68.5 percent. Compared to the same month in 2022, the price index of the second group (cigarettes and tobacco) also increased by 30.0 percent year-on-year.
The index of indices of the third group (clothing) increased by 10.7 percent. The prices of the sector (housing services) increased by 13.3 percent, and the inflation rate in the fifth group (home furnishings) increased by 89.2 percent. It was reported that the price index of the sixth group (the health sector) increased by 42.2 percent, while the transportation sector witnessed an increase of 74.2 percent in September compared to the same month in 2022.
According to the statistics, the prices of the eighth group (telecommunications) increased by 74.1 percent. On an annual basis, the inflation rate in the ninth group (entertainment and culture) increased by 14.3 percent, while the prices in the tenth group (education sector) increased by 72.0 percent. Also, the prices of the group (restaurants and hotels) rose year-on-year last August by 54.3 percent, and the prices of the miscellaneous goods and services rose 32.4 percent.
The Consumer Price Index (inflation) in August (excluding food and beverages) increased by 3.3 percent year-on-year. The Consumer Price Index is a tool for measuring price levels generally between two periods, either monthly or annually and is usually a base indicator for measuring growth or deflation. Through it, the state can make economic and trade decisions and draw up financial and monetary policies.
Gold hits $1,981
Meanwhile, gold prices rose by 2 percent at the end of last week’s trading to close at $1,981 per ounce against the backdrop of escalating tensions in the Middle East. A specialized report issued on Sunday by the Kuwait Company said that the yellow metal achieved its best performance in three months due to increased demand and being considered a safe haven amid geopolitical risks.
The report added that gold prices rose sharply during last week’s trading sessions to touch $1,997 per ounce before closing at $1,981, indicating the entry of new groups of investors who got rid of high-risk assets and resorted to the precious metal. He explained that gold futures closed at $1,994 per ounce after touching the level of $2,009 per ounce, the highest level since last July.
He pointed to the decline in the yield of US Treasury bonds, especially the benchmark 10-year bonds, which fell seven basis points, which represents support for gold prices in conjunction with the decline in the US dollar exchange rate against other major currencies. He said that the markets expect the US Federal Reserve (Central Bank) to keep interest rates steady at its next meeting, indicating that the policy of raising interest rates is nearing completion.
The report stated that this week’s economic calendar will contain important data affecting the direction of the yellow metal, the first of which is the US Purchasing Managers’ Index (PMI), the release of GDP for the third quarter in its preliminary reading, durable goods orders and the US central bank’s inflation gauge, which data will be influential in market movements in parallel with the development of accelerated events in the Middle East. — KUNA