Government support, strong dinar dent impact of inflation – ARAB TIMES – KUWAIT NEWS – Arab Times Kuwait News

Government support, strong dinar dent impact of inflation – ARAB TIMES – KUWAIT NEWS – Arab Times Kuwait News

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KUWAIT CITY, July 23: The inflation rate in Kuwait has risen to record levels, the highest in years, and is similar to the rest of the world’s economies where the consumer price index has risen to historical levels, reports Al-Anba daily. But despite this, inflation levels in Kuwait remain at 4.7%, much lower compared to inflation levels in Western economies, which exceeded 9%, as in the United States, for example.

The reason for this difference is due to subsidies, especially fuel subsidies, which are reflected in the prices of other goods and services, in addition to the strength of the Kuwaiti dinar against the US dollar, in addition to Kuwait’s trade surplus thanks to record increases in oil prices. The difference in inflation rates also explains one of the factors on which the Central Bank of Kuwait relied in its decision to raise interest rates, but at rates lower than the US Federal Reserve.