RIYADH: Kuwait’s inflation rate remained steady at 2.49 percent in February, with a year-on-year upsurge in services and food prices, according to the latest data from the Central Statistical Bureau. 

The measure was broadly the same level as the 2.5% figure seen in both January and December.

In February, the index reached 135.7, reflecting continued price increases across several major expenditure categories. While the overall inflation rate remains moderate, specific sectors experienced significant annual cost escalations.

The food and beverage sector recorded a 5.23 percent year-on-year increase, followed by the clothing and footwear division, which saw a 4.63 percent surge.

Prices in the miscellaneous goods and services sector increased by 5.46 percent, driven by higher costs for personal goods and services. Healthcare costs also saw a notable increase of 4.08 percent, while the furnishing and household maintenance division rose 3.04 percent.

Kuwait’s inflation trends align closely with those seen in other Gulf Cooperation Council countries. Saudi Arabia’s inflation remained steady at 2 percent year-on-year in February, primarily driven by an 8.5 percent increase in housing rents. In contrast, Oman recorded a milder annual inflation increase of 1 percent in the same month, led by a 6.3 percent rise in the personal goods and miscellaneous services sector.

The Central Statistical Bureau report highlighted the price trends across different expenditure groups and provided insight into the movement of key categories within the consumer price index.

Despite overall inflation remaining relatively stable, Kuwait’s housing services sector showed minimal movement, rising just 0.90 percent annually and remaining unchanged on a month-to-month basis. 

Transport prices declined by 1.19 percent over the past year, though they saw a minor monthly uptick of 0.07 percent. The communication division recorded a slight annual increase of 0.88 percent, while the recreation and culture sector rose by 2.48 percent. 

Education costs saw a small 0.71 percent increase, and the restaurants and hotels sector recorded a 2.03 percent annual rise.

The report showed that the total index, excluding food, rose by 1.93 percent annually, while the total index, excluding housing, increased by 3.13 percent. These figures suggest that inflationary pressure is primarily driven by non-housing-related expenses.

This comes as Kuwait continues to recover in its non-oil sector, supported by easing inflation. Its non-oil exports rose to 23.2 million dinars ($74.9 million) in December, marking a 12.08 percent month-on-month increase, according to data from the Ministry of Commerce and Industry.

In its latest consultation with Kuwait in December, the International Monetary Fund highlighted Kuwait’s non-oil sector recovery amid easing inflation. However, it noted a 1.5 percent gross domestic product contraction in the second quarter of 2024, driven by a 6.8 percent drop in the oil sector.