Business | Economy
Kuwait central bank says high inflation is a concern
Kuwait's central bank is not happy that domestic inflation is historically high, although prices are not rising as fast as in other Gulf countries, Governor Shaikh Salem Abdul Aziz Al Sabah said on Tuesday.
- Reuters
- Published: 23:41 February 5, 2008
London: Kuwait's central bank is not happy that domestic inflation is historically high, although prices are not rising as fast as in other Gulf countries, Governor Shaikh Salem Abdul Aziz Al Sabah said on Tuesday.
At a conference in London, Al Sabah also called for a wider variety of Islamic finance instruments to make it easier for monetary authorities to intervene in the market to control liquidity.
Kuwait's inflation, which hit all-time highs of 6.2 per cent in September, has become a political issue because the country relies heavily on imported goods, a third of which are paid for in euros, while its main export, oil, is priced in dollars.
"Inflation is high historically. We are not satisfied... But compared with other countries in the region it's not so high," Al Sabah said.
In some of other Gulf states, pricing are rising by more than 10 per cent.
The region is struggling to control soaring inflation as higher oil prices spur rapid economic growth at a time when the United States is cutting interest rates to prevent the economy from falling into recession.
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