The National Bank of Kuwait revealed that consumer price inflation declined to 1.8 percent on an annual basis last June, compared to 1.9 percent in May, while it rose marginally 0.3 percent on a monthly and quarterly basis.
In its economic report, the bank attributed the decline in the inflation rate to a slowdown in the performance of most basic components, including transportation, entertainment and hospitality, which was offset by a large jump in the rate of food and housing inflation, noting a slowdown in the rate of core inflation, which excludes food and housing, to 2.5 percent in June, which is the lowest level recorded in nearly one year, compared to 3.4 percent in May, and 3.1 percent at the end of the first quarter of 2020.
According to the report, the rate of food price inflation jumped to 3.1 percent on an annual basis in June, which is the highest level recorded in four years, compared to 1.9 percent on an annual basis in May, and 2.8 percent in March.
This was followed by the sharp increase in the cost of fresh produce, which has resulted from supply-side disruptions due to the pandemic.
The report showed a slowing of the core inflation rate in June, as most basic components, including transportation, retreated 3.3 percent on a quarterly basis to 0.2 percent on an annual basis, driven by lower airline ticket prices and a decline in the entertainment component, which fell 2.7 percent on Quarterly basis to 0.4 percent year on year.
Source (Al-Rai Kuwaiti newspaper, Edited)
