Kuwait inflation hits decade high as food prices soar by 7.2%

Kuwait inflation hits decade high as food prices soar by 7.2%

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Inflation in Kuwait has reached a decade high as food prices, consumer price index and housing service prices rose in the state.

Markaz subsidiary Marmore said inflation in the food and beverage sector was 7.2 percent year on year in December 2021, with prices rising continuously since May 2020 due to supply chain disruption, now likely to be further compounded by conflict in Ukraine, a major global wheat supplier, following the Russian invasion.

But food prices are the major factor that are driving inflation, with labour shortage also contributing to the increases, the report said.

“It is worth noting that the outlook for food prices remains unfavorable,” Marmore said.

“Among the GCC countries, Kuwait and Saudi Arabia experienced inflation in food prices from the start of 2020 on the back of a rise in international food prices, however, the remaining GCC countries mostly experienced flat food prices.”

GCC nations are trying to reduce their food dependency by investing in agricultural land and technology in their own country and foreign countries. Kuwait Investment Authority’s plans to invest in agricultural lands abroad, the report said.

Saudi Agricultural and Livestock Investment Co, (SALIC), imported 355,000 tons of wheat from Ukraine, Canada, and Australia in 2021, which accounted for 10