The latest official figures have shown Kuwait’s inflation rate running at 5.9 percent year on year, the National Bank of Kuwait (NBK) said Saturday.
The data available on the consumer sector indicated retail activity has rebounded after dipping in 2008, the bank said in a report, quoted by the official KUNA news agency.
In addition, the recovery failed to spur an up-tick in retail prices, suggesting that the central bank does not need to reverse the cuts in interest rates, the report added.
Prices among the six Gulf Arab countries have been rising at their fastest pace in the past ten years.
In 2007, Kuwait unpegged the dinar from the tumbling U.S. dollar in steps to contain inflation caused by increasing prices of imports from non-dollar areas. But the move has been slow to meet expectations