Inflation in Kuwait rose in the second quarter of 2022, but is expected to trend lower in the second half as global price pressures ease, the National Bank of Kuwait has said.
The Gulf nation's consumer price index expanded 4.4 per cent annually in the three months ended June, attributed to global factors such as high food prices and supply chain bottlenecks, the lender said in an economic update released on Saturday.
However, it was unchanged from the first quarter and was slightly lower than April and May, but still elevated by global standards.
Gains made by the Kuwaiti dinar, in line with a stronger US dollar, are also helping to contain general price pressures through lowering import prices.
The dinar has also risen against major currencies so far in 2022, including the Chinese yuan (4 per cent), euro (10 per cent) and Japanese yen (16 per cent).
NBK expects inflation to slow down in the second half as some global pressures ease, monetary policy is tightened further and as big price increases last year fall out of the annual comparison, it added.
"Upside risks to inflation include a fall in the US dollar, which could push up import prices in Kuwait, or a pick-up in housing rents, which have been stagnant this year," NBK said.
"Downside risks include lower food international prices, an easing in global supply chain pressures and slower domestic economic growth if oil prices were to fall."
Kuwait exited a two-year recession in 2021 as real gross domestic product grew 2.3 per cent, following a Covid-19-induced 8.9 per cent contraction the year before 2020, the World Bank estimates.
The Opec member's 2022 economic growth is expected to accelerate to 5.7 per cent due to oil output that is expected to be 8.6 per cent higher this year, it added, noting that the country's fiscal deficit is expected to narrow with higher crude prices.
The food component of the CPI continues to be a key driver of higher inflation, rising to 8 per cent in June compared to March's 7.2 per cent. The prices of most food sub-categories increased in the second quarter, but at slower rates compared to the previous three-month period.
However, NBK said lower international food prices could help slow down domestic increases going forward, citing the latest report from the UN Food and Agriculture Organisation (FAO).
The FAO last week said that world food prices posted their steepest monthly decline in almost 14 years, led by substantial drops in the cost of vegetable oil and cereals.
The housing services index, which historically changes at the end of each quarter, showed no change for the second successive quarter, cutting the annual rate slightly to 2.2 per cent.
NBK had previously identified this sector as "pivotal" for overall inflation prospects in 2022, given its large 33 per cent weight in the CPI basket and its "clear strengthening" the second half of 2021.
"Data so far, however, suggest that this momentum has not been sustained in 2022, so contributing less to inflation than had been expected," it added.
Core inflation, which strips away food and housing, remained historically high but slowed slightly to 4.5 per cent in June from 4.7 per cent in March.
For the first half, inflation in Kuwait averaged 4.5 per cent, which was the highest in several years. However, it remains well below current rates in major overseas markets, including the US (8.5 per cent) and the Eurozone (8.9 per cent), as the economy is supported by price controls and subsidies in fuel and energy.
"On the downside, global food and commodity prices could fall further and more rapidly than anticipated as global growth weakens, cutting domestic food prices. Lower oil prices would also affect the growth outlook for the Kuwaiti economy, probably reducing inflationary pressures," NBK said.
"A weaker world economy would unwind some pressures on global supply chains, reducing inflationary pressures from this source as well."
Kuwait's emir on August 1 issued a royal decree to establish a new government made up of 12 ministers — down from 15 as some have taken additional portfolios — to be led by Prime Minister Sheikh Ahmad Nawaf Al Sabah.
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Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
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Basquiat in Abu Dhabi
One of Basquiat’s paintings, the vibrant Cabra (1981–82), now hangs in Louvre Abu Dhabi temporarily, on loan from the Guggenheim Abu Dhabi.
The latter museum is not open physically, but has assembled a collection and puts together a series of events called Talking Art, such as this discussion, moderated by writer Chaedria LaBouvier.
It's something of a Basquiat season in Abu Dhabi at the moment. Last week, The Radiant Child, a documentary on Basquiat was shown at Manarat Al Saadiyat, and tonight (April 18) the Guggenheim Abu Dhabi is throwing the re-creation of a party tonight, of the legendary Canal Zone party thrown in 1979, which epitomised the collaborative scene of the time. It was at Canal Zone that Basquiat met prominent members of the art world and moved from unknown graffiti artist into someone in the spotlight.
“We’ve invited local resident arists, we’ll have spray cans at the ready,” says curator Maisa Al Qassemi of the Guggenheim Abu Dhabi.
Guggenheim Abu Dhabi's Canal Zone Remix is at Manarat Al Saadiyat, Thursday April 18, from 8pm. Free entry to all. Basquiat's Cabra is on view at Louvre Abu Dhabi until October
The Facility’s Versatility
Between the start of the 2020 IPL on September 20, and the end of the Pakistan Super League this coming Thursday, the Zayed Cricket Stadium has had an unprecedented amount of traffic.
Never before has a ground in this country – or perhaps anywhere in the world – had such a volume of major-match cricket.
And yet scoring has remained high, and Abu Dhabi has seen some classic encounters in every format of the game.
October 18, IPL, Kolkata Knight Riders tied with Sunrisers Hyderabad
The two playoff-chasing sides put on 163 apiece, before Kolkata went on to win the Super Over
January 8, ODI, UAE beat Ireland by six wickets
A century by CP Rizwan underpinned one of UAE’s greatest ever wins, as they chased 270 to win with an over to spare
February 6, T10, Northern Warriors beat Delhi Bulls by eight wickets
The final of the T10 was chiefly memorable for a ferocious over of fast bowling from Fidel Edwards to Nicholas Pooran
March 14, Test, Afghanistan beat Zimbabwe by six wickets
Eleven wickets for Rashid Khan, 1,305 runs scored in five days, and a last session finish
June 17, PSL, Islamabad United beat Peshawar Zalmi by 15 runs
Usman Khawaja scored a hundred as Islamabad posted the highest score ever by a Pakistan team in T20 cricket
Wicked
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Hili 2: Unesco World Heritage site
The site is part of the Hili archaeological park in Al Ain. Excavations there have proved the existence of the earliest known agricultural communities in modern-day UAE. Some date to the Bronze Age but Hili 2 is an Iron Age site. The Iron Age witnessed the development of the falaj, a network of channels that funnelled water from natural springs in the area. Wells allowed settlements to be established, but falaj meant they could grow and thrive. Unesco, the UN's cultural body, awarded Al Ain's sites - including Hili 2 - world heritage status in 2011. Now the most recent dig at the site has revealed even more about the skilled people that lived and worked there.
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Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
Key Points
- Protests against President Omar Al Bashir enter their sixth day
- Reports of President Bashir's resignation and arrests of senior government officials
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UAE currency: the story behind the money in your pockets
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- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
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- Field engineer: Dh6,500 to Dh7,500
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50-man Royal Rumble - names entered so far include Braun Strowman, Daniel Bryan, Kurt Angle, Big Show, Kane, Chris Jericho, The New Day and Elias
Universal Championship Brock Lesnar (champion) v Roman Reigns in a steel cage match
WWE World Heavyweight Championship AJ Styles (champion) v Shinsuke Nakamura
Intercontinental Championship Seth Rollins (champion) v The Miz v Finn Balor v Samoa Joe
United States Championship Jeff Hardy (champion) v Jinder Mahal
SmackDown Tag Team Championship The Bludgeon Brothers (champions) v The Usos
Raw Tag Team Championship (currently vacant) Cesaro and Sheamus v Matt Hardy and Bray Wyatt
Casket match The Undertaker v Chris Jericho
Singles match John Cena v Triple H
Cruiserweight Championship Cedric Alexander v tba
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Meydan Racecourse racecard:
6.30pm: The Madjani Stakes Listed (PA) | Dh175,000 | 1,900m
7.05pm: Maiden for 2-year-old fillies (TB) | Dh165,000 | 1,400m
7.40pm: The Dubai Creek Mile Listed (TB) | Dh265,000 | 1,600m
8.15pm: Maiden for 2-year-old colts (TB) | Dh165,000 | 1,600m
8.50pm: The Entisar Listed (TB) | Dh265,000 | 2,000m
9.25pm: Handicap (TB) | Dh190,000 | 1,200m
10pm: Handicap (TB) | Dh190,000 | 1,600m.
Mica
Director: Ismael Ferroukhi
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3 stars
Dark Souls: Remastered
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