Annual inflation in Kuwait holds near projected March levels

Monthly inflation in Kuwait down from March’s 0.7% projections

ALBAWABA – The consumer price index in Kuwait increased by 3.69 percent on an annual basis in April, and by 0.16 percent on a monthly basis, Bloomberg reported Wednesday.

The Kuwait Financial Center issued a report earlier in May, stating that the inflation rate in March is expected to reach 3.7 percent on an annual basis and 0.7 percent on a monthly basis 

Inflation is expected to average 3.3 percent in 2023, higher than the previous estimate of 2.4%, according to the center. 

As for the per capita GDP in terms of purchasing power, Kuwait has fallen in the world’s richest countries index to 36th place out of 193.

Notably, Kuwait’s is the only currency in the Gulf Cooperation Council (GCC) that is not pegged to the United States (US) dollar.

The US Federal Reserve Board (the Fed) has increased interest rates by more than 5 percent in a little over a year.

Interest rate hikes in the US affect pegged currencies all over the world, especially those pegged to the dollar.