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

According to ‘Markaz’ subsidiary Marmore stated that the inflation in the food and beverage sector 7.2 percent based on year to year in December 2021, and the price was increasing non-stop since May 2020 and the reason is because of chain disruption, now likely to be further compounded by conflict in Ukraine, a major global wheat supplier, following the Russian invasion.

However, food prices are the major factors driving inflation, with the shortages of labour contributing to the increases, as per reports.

As per Marmore, “It is worth considering that the lookout for food prices remains unfavorable.”

Among the GCC countries, Kuwait and Saudi Arabia experienced inflation in their food prices in the initial period of 2020 on the back of a rise in global food prices. However, the rest of the GCC countries mainly experienced flat food prices.

Moreover, GCC nations are trying their best in order to reduce their prices of food, and it also depends on investing in agricultural land and technology in their own country and also in foreign countries. The report said that Kuwait Investment Authority plans to invest in agricultural lands abroad.

According to reports, Saudi Agricultural and Livestock Investment Co (SALIC) imported 355,000 tons of wheat from Ukraine, Canada, and Australia in 2021, which accounted for 10 percent of the country’s demands.

“Hassad Food”, the Qatari sovereign wealth fund’s agricultural arm, has purchased land in Sudan. Australia plans to invest millions of dollars in agricultural projects in Kenya, Brazil, Argentina, Turkey, and Ukraine.

Reports:

According to the reports by Marmore’s that Kuwait’s consumer price index (CPI) increased by 4.3 percent, the highest rise ever since October 2011. The growth for housing services was 2.35 percent, having been flat since the beginning of 2019.