People On Fixed Incomes Are At Risk From Rising Inflation

Kuwait's inflation, which has been rising since 2017, has accelerated dramatically in the previous two years as a result of the global epidemic of COVID-19, which caused huge disruptions in international supply chains and a surge in food prices. Inflationary pressures have been worsened by the ongoing war in Eastern Europe.

Consumer prices increased by 8.2 percent between September 2017 and September 2021, according to information released by the Central Administration of Statistics, rising from 112.8 to 122.1 points over the four-year period.

Food and energy costs soared after Russia invaded Ukraine at the end of February 2022, causing inflationary increases in many countries. Workers' incomes have grown in general to keep up with inflation, according to statistics, although this increase has not been uniform. The most vulnerable appear to be Kuwait's middle- and low-income citizens, as well as those on fixed incomes, such as pensioners, who have seen their purchasing power eroded by rising food and other market costs.

According to labour market statistics recently released by the Central Administration of Statistics, average citizen incomes climbed by 6.04 percent between 2017 and 2021, while expatriate salaries increased at a faster pace of 13.7 percent. However, it should be recognized that Kuwaiti salaries are higher in value than expatriate pay.

The average income of a Kuwaiti employee climbed by KD85 dinars over the four years, rising from KD1405 in September 2017 to KD1490 in September 2021, according to the statistics. Meanwhile, expatriate salaries have increased by KD40 dinars on average, climbing from KD291 in September 2017 to KD331 four years later.

According to World Bank data, inflation in Kuwait is predicted to grow from 3.4 percent in 2021 to 3.6 percent in 2022, making Kuwait the second Gulf country in terms of expected inflation after Qatar, which is expected to hit 4%.

According to data from the Central Administration of Statistics, prices in the 'food and drinks' category have risen by 7.3 percent since February 2022, compared to the same time in 2021. The food and beverage industry accounts for 17 percent of Kuwait's overall imports.

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