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Food prices soar in 2021
KUWAIT CITY, Oct 30: A recent report issued by the MUFG Bank, the second largest Japanese bank, Kuwait tops the GCC countries in the rate of inflation which has risen steadily and significantly over the past more than two years, after it was the lowest at the end of 2018, reports Al-Anba daily. The daily added, Qatar ranked second with an inflation rate slightly lower than 3%, followed by Oman, the UAE, and Bahrain, but with vast differences, where inflation rates ranged around 1% or less. Inflation in Saudi Arabia has seen a significant change, as it witnessed huge and sudden increases starting from the middle of 2020 with the rise in the value-added tax, and the increase continued on an annual basis by a large difference to decline sharply starting in June of this year with the end of the impact of the comparison period.
In a comparison between the inflation development rates in the Gulf countries, the report indicated the inflation rate in Kuwait reached slightly more than 3% on an annual basis, thus leading the inflation rate in the Gulf countries. MP Dr. Abdulaziz Al-Saqabi has submitted a parliamentary query about the rate of inflation in Kuwait and the reasons for its rise, after a graph showed inflation rising steadily in Kuwait, unlike the rest of the Gulf countries, where the performance of the inflation rate varied according to many variables. The International Monetary Fund attributed the high inflation rate in Kuwait during 2021 to the significant increases in food prices in conjunction with the rise in the costs of services related to travel, and expected the inflation rate to reach 3.2% by the end of this year, to maintain the level of 3% in the medium term.