KFH predicts Kuwait inflation to rise by 2.5 pct ''13

KUWAIT, Aug 11 (KUNA) -- General average of inflation in Kuwait might increase by 2.5 percent this year and by 3.5 percent next year, Kuwait Finance House (KFH) said Sunday.
In a monthly report about inflation in Kuwait, KFH said it planned to reconsider projections for domectic inflation after the central statistics department released amended inflation numbers based on 2007 figures.
The numbers released by the central statistics department showed that consumer prices index grew by three percent last May year-over-year (YOY).
The new inflation calculation method, said KFH, has boosted importance and influence of the housing sector, thus inflation would remain unchanged this year. It, however, anticipated decline in food prices in the second half this year.
KFH, on the monetary policy, projected the major interest rates to remain at two percent in 2013 and 2014 because interest rates in Kuwait were generally following foot-steps of the US Federal Reserve's interest rates. (end) fnk.bs KUNA 112026 Aug 13NNNN