Commodity Prices Are Expected To Rise In Kuwait In The Near Future

A government report expects the world’s economies to witness further increases in commodity prices in the coming period, especially in food prices, which will put more pressure on countries that depend on food imports, or countries where climate or conflict shocks could lead to disrupt local food production, in addition to countries that suffer from macroeconomic fragility, pointing out the need to take urgent decisions to reduce the impact of global food price increases on the local market, especially since its cost will be high on the national economy. 

According to the report, food prices will continue to rise during the next five years, despite their stability, but will be higher than before the Covid-19 pandemic.

Prices of agricultural commodities and grain are expected to remain stable, but levels are expected to exceed those before the Corona crisis. 

According to data from Kuwait's Central Administration of Statistics, consumer price indexes (inflation) increased by 3.79 % in November last year, and that the rise in inflation on an annual basis was primarily due to an increase in prices for all the main groups that influenced the index numbers, especially food.

The government reports that Kuwait imports most of its merchandise in the form of appliances, machinery, equipment, and industrial inputs, while it imports an estimated 80% of its food. The Kuwaiti economy is characterized by a high per capita income and a limited industrial base, which may explain the steady growth in merchandise imports over the past ten years. 

Cooperative societies account for 80% to 85% of all food commodities sold on the local market and are the most important outlet for selling them. Thus, any measures aimed at neutralizing price increases in the local market must focus on cooperative societies. 

The sources added that the method of importing merchandise by ship is the most important channel for transporting goods to Kuwait, exceeding 85% of total imports, while shipping by land does not exceed 10%. There has been a disruption in the ports and shortage of containers as a result of Kuwaiti imports being exposed to shipping methods via the sea. 

Comments Post Comment

Leave a Comment

Submit