Limited industrial base, import of gadgets gives rise to inflation in Kuwait

Limited industrial base, import of gadgets gives rise to inflation in Kuwait

A government report stated that the whole world is expected to continue witnessing commodity price hikes, especially the prices of food products; which will put more pressure on countries that depend on food imports, those whose climate or conflicts could disrupt local food production, and those suffering from macroeconomic fragility, reports Al-Qabas daily. The report stressed the need to make urgent decisions to reduce the impact of global food price increases on the local market, especially since the cost to the national economy will be high. It indicated that food prices will continue to rise in the next five years — higher than the prices before the Corona crisis. The same applies to the prices of agricultural products and grains. Data from the Central Statistics Bureau showed that the consumer price index (inflation) in Kuwait rose by 3.79 percent in November, explaining that the annual rise in inflation rate stems from the increase in the prices of all the main groups affecting the movement of index numbers, particularly foodstuffs, education, clothing, and apparel.

Merchandise imports

Government data indicate that merchandise imports to Kuwait are concentrated in appliances, machinery, equipment, and industrial inputs and that the country imports approximately 80 percent of its