Kuwait: Kuwait’s inflation rate inched higher in August according to newly released figures, as rising food and beverage costs pushed the annual figure to 2.39 percent, marking a 0.07 percent increase compared to the previous month.

Citing data from the country’s Central Statistical Bureau, Kuwait News Agency reported that higher prices in other key sectors, including health, clothing, and housing services, as well as household furnishings, communications, and education, contributed to the annual rise in inflation.

The latest analysis follows signs of economic recovery, after the country’s economy returned to positive territory in the first quarter of 2025, recording a 1 percent year-on-year increase, following seven consecutive quarters of contraction, the Central Bank of Kuwait said in July.

In September, the International Monetary Fund echoed similar views, noting that Kuwait’s economy is on a steady recovery in 2025. The IMF added that headline consumer price index inflation is projected to ease to 2.2 percent in 2025, down from 2.9 percent in 2024.

“Data from the Central Bureau of Statistics showed that the consumer price index (inflation) increased locally by 2.39 percent by the end of last August on an annual basis,” said Kuwait News Agency.

According to the report, food and beverage prices rose 6.02 percent year on year, while clothing and health expenses increased 3.11 percent and 2.77 percent, respectively.

In August, costs for household furnishings rose by 3.08 percent, followed by prices for restaurants and hotels at 1.86 percent and recreation and culture at 1.61 percent.

Conversely, transport costs fell by 1.75 percent in August compared with the same month the previous year.

Excluding food and beverages, inflation in Kuwait increased by 1.53 percent year on year and 0.07 percent month on month in August, the news agency added.

In September, Fitch Ratings reaffirmed Kuwait’s AA- long-term foreign currency rating with a stable outlook, citing its strong fiscal position and external balance sheet.

The US-based agency noted that the country’s external balance sheet remains the strongest among all Fitch-rated sovereigns, with net foreign assets projected to rise to 607 percent of gross domestic product in 2025, up from an estimated 576 percent in 2024.

Earlier this month, S&P Global reported that Kuwait’s Purchasing Managers’ Index rose to 53.4 from 52.8 in October, marking a four-month high and signaling a solid improvement in non-oil business conditions.

The expansion was driven by the strongest increase in new orders since June, supported by aggressive marketing and competitive pricing.