Mubasher: The inflation in Kuwait is expected to decline moderately to 2.9% in 2017, impacted by the lower rent inflation as more housing units enter the Kuwaiti market, a recent report by the Qatar National Bank (QNB) said.
This decrease in rental prices should counteract higher transport costs as a result of the fuel subsidy cuts, higher food prices due to the increase in commodity prices worldwide, and less appreciation in the Kuwaiti Dinar.
In 2018, the inflation in Kuwait should accelerate to 4.2% as the country will implement a 5% VAT in the first quarter, raising the cost of non-essential goods and services, the QNB’s report added.
However, the inflation is projected to ease to 3.3% in 2019 as the base year effect of the VAT fades; the rest of the basket, including food and housing, is expected to be broadly stable.
