Kuwait annual inflation eases to 2.49% in May

22/06/2026 04:15 AST

Kuwait's annual inflation rate eased to 2.49 percent in May, driven by higher prices for food, healthcare, clothing, education, and miscellaneous goods, new figures showed.

Issued by the state's Central Statistical Bureau, the May 2026 Consumer Price Index report showed that consumer prices increased 0.07 percent from April.

The latest data comes as inflation in Kuwait remains relatively contained by regional standards. In its latest Article IV Consultation, the International Monetary Fund projected headline consumer price inflation to moderate to 2.1 percent in 2026 before stabilizing at just below 2 percent over the medium term, supported by prudent macroeconomic policies and easing price pressures.

The IMF also expects Kuwait's economy to expand by 3.8 percent in 2026, driven by the gradual unwinding of OPEC+ production cuts and continued growth in the non-oil sector, supporting a stable inflation outlook despite ongoing regional uncertainties.

"The CPI is one of the most important economic indicators to follow-up the business condition and the economic situation in Kuwait. This indicator is also an essential element to follow the overall price movements in retail markets," the report said.

It added: "This indicator is used as a measure of the changes in the purchasing power of the currency and to determine the interest rates and liquidity by the Central Bank of Kuwait and to support the adoption of appropriate economic decisions by the official bodies as well as for the preparation of national accounts at constant prices."

Food and beverage prices rose 5.96 percent in May from a year earlier, while cigarettes and tobacco prices increased 0.07 percent. Clothing and footwear costs climbed 1.10 percent, housing services rose 0.49 percent, and furniture and household equipment prices increased 1.18 percent.

Healthcare costs rose 1.19 percent year on year, while transportation increased 4.46 percent. Communications and recreation and culture prices rose 1.03 percent and 1.06 percent, respectively, while education increased 0.94 percent.

The data also showed that restaurant and hotel prices rose 0.88 percent annually in May, while miscellaneous goods and services recorded the largest increase, climbing 6.61 percent.

The latest inflation data also comes against a backdrop of continued confidence in Kuwait's credit profile. In May, Moody's Ratings affirmed the country's long-term foreign and local currency issuer ratings at A1 with a stable outlook, despite heightened geopolitical risks and disruptions to regional trade routes.

Arab News