KUWAIT: Kuwait’s Central Statistical Bureau (CSB) reported on Sunday that the consumer price index (CPI) increased by 2.39 percent on an annual basis in August, while rising 0.07 percent compared with July. The annual increase was primarily driven by higher prices in key sectors, including food and beverages, health, clothing, housing services, household furnishings, communications, recreation and culture, education, restaurants and hotels, and miscellaneous goods and services, the CSB said in a statement to Kuwait News Agency (KUNA). Transport costs, however, recorded a decline.
According to the report, food and beverages prices rose 6.02 percent year-on-year, tobacco 0.07 percent, clothing 3.11 percent, housing services 0.98 percent, household furnishings 3.08 percent, health 2.77 percent, communications 0.48 percent, recreation and culture 1.61 percent, education 0.71 percent, restaurants and hotels 1.86 percent, and miscellaneous goods and services 4.32 percent. Transport costs fell 1.75 percent compared with August 2024. 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 CSB noted.
Gold and geopolitical tensions
Meanwhile, gold prices closed last week at $4,198 per ounce, underpinned by growing expectations of a US interest rate cut and persistent geopolitical tensions in various regions worldwide, according to a report issued Sunday by Kuwait’s Dar Al-Sabaik Company. The report noted that US inflation remaining near 3 percent reinforces expectations of a more flexible monetary policy in the near term, suggesting potential interest rate reductions.
This, in turn, enhances gold’s appeal as a safe-haven asset amid increasing global economic uncertainty. Looking ahead, the report highlighted the US Federal Reserve meeting as the focal point of this week’s economic calendar. The recent government shutdown has delayed official data releases beyond September, heightening market sensitivity to signals from the Fed. The United States is set to publish postponed economic indicators, including October jobs data and third-quarter employment costs.
Internationally, Canada, Switzerland, Australia, Brazil, and Turkey are preparing to announce new interest rate decisions. China will release November inflation and production data, while the UK, Germany, and Italy are expected to publish key figures on growth, trade, and industrial production. Analysts said these developments collectively support a bullish outlook for gold, especially amid slowing US inflation and weakening labor market indicators.
Gold futures for February delivery ended last week at $4,243 per ounce, with the dollar index stable at 98.9 points and the 10-year Treasury bond yield rising to 4.14 percent. According to the report, these factors limited gold’s gains but did not prevent it from holding above the $4,190 level. Market observers remain divided, with analysts showing a mix of neutral and optimistic sentiments, while major investors lean towards a bullish scenario. Breaking through the $4,265 per ounce level could open the way for a retest of the all-time high near $4,380, with some projections indicating that gold could reach $5,000 per ounce by 2026, driven by central bank purchases and declining global interest rates.
In Kuwait’s local market, Dar Al-Sabaik reported that 24-karat gold reached KD 41.23 per gram (approximately $135), 22-karat gold was priced at KD 37.38 per gram (approximately $123), and a kilogram of silver traded at KD 624 (approximately $2,036). The report also noted that the ounce, used as a unit for precious metals, is equivalent to 31.103 grams, while a standard ounce equals 28.349 grams.— KUNA
