Saudi Arabia launches incentives package to attract FDI in mining sector 

RIYADH: Kuwait’s inflation rate remained steady at 2.49 percent in February, with a year-on-year upsurge in services and food prices, according to the latest data from the Central Statistical Bureau. 

The measure was broadly the same level as the 2.5% figure seen in both January and December.

In February, the index reached 135.7, reflecting continued price increases across several major expenditure categories. While the overall inflation rate remains moderate, specific sectors experienced significant annual cost escalations.

The food and beverage sector recorded a 5.23 percent year-on-year increase, followed by the clothing and footwear division, which saw a 4.63 percent surge.

Prices in the miscellaneous goods and services sector increased by 5.46 percent, driven by higher costs for personal goods and services. Healthcare costs also saw a notable increase of 4.08 percent, while the furnishing and household maintenance division rose 3.04 percent.

Kuwait’s inflation trends align closely with those seen in other Gulf Cooperation Council countries. Saudi Arabia’s inflation remained steady at 2 percent year-on-year in February, primarily driven by an 8.5 percent increase in housing rents. In contrast, Oman recorded a milder annual inflation increase of 1 percent in the same month, led by a 6.3 percent rise in the personal goods and miscellaneous services sector.

The Central Statistical Bureau report highlighted the price trends across different expenditure groups and provided insight into the movement of key categories within the consumer price index.

Despite overall inflation remaining relatively stable, Kuwait’s housing services sector showed minimal movement, rising just 0.90 percent annually and remaining unchanged on a month-to-month basis. 

Transport prices declined by 1.19 percent over the past year, though they saw a minor monthly uptick of 0.07 percent. The communication division recorded a slight annual increase of 0.88 percent, while the recreation and culture sector rose by 2.48 percent. 

Education costs saw a small 0.71 percent increase, and the restaurants and hotels sector recorded a 2.03 percent annual rise.

The report showed that the total index, excluding food, rose by 1.93 percent annually, while the total index, excluding housing, increased by 3.13 percent. These figures suggest that inflationary pressure is primarily driven by non-housing-related expenses.

This comes as Kuwait continues to recover in its non-oil sector, supported by easing inflation. Its non-oil exports rose to 23.2 million dinars ($74.9 million) in December, marking a 12.08 percent month-on-month increase, according to data from the Ministry of Commerce and Industry.

In its latest consultation with Kuwait in December, the International Monetary Fund highlighted Kuwait’s non-oil sector recovery amid easing inflation. However, it noted a 1.5 percent gross domestic product contraction in the second quarter of 2024, driven by a 6.8 percent drop in the oil sector.

TOKYO/SINGAPORE: Oil prices were little changed on Tuesday as markets weighed the impact of newly announced US tariffs on countries that buy Venezuelan oil and the uncertain outlook for global demand.

Brent crude futures were up 1 cent at $73.01 a barrel by 7:24 a.m. Saudi time. US West Texas Intermediate crude dipped 1 cent to $69.10.

Both benchmarks gained more than 1 percent on Monday after US President Donald Trump announced a 25 percent tariff on countries importing oil and gas from Venezuela.

Oil is Venezuela’s main export and China, which is already the subject of US tariffs, is its largest buyer.

“Investors fear Trump’s various tariffs could slow the economy and curb oil demand, but the prospect of tighter US sanctions on Venezuelan and Iranian oil constraining supply, along with his swift policy shifts, make it difficult to take large positions,” said Tsuyoshi Ueno, senior economist at NLI Research Institute.

“We expect WTI to stay around $70 for the rest of the year, with potential seasonal gains as the US and other countries enter the driving season,” he added.

Last week, the US issued new sanctions intended to hit Iranian oil exports.

However, crude eased back from its session highs after the Trump administration also on Monday extended a deadline to May 27 for US producer Chevron to wind down operations in Venezuela.

The withdrawal of Chevron’s license to operate could reduce production in the country by about 200,000 barrels per day, ANZ analysts wrote in a note.

Oil prices were also pressured by economic concerns amid mounting global trade tensions.

Trump also said automobile tariffs are coming soon even as he indicated that not all of his threatened levies would be imposed on April 2 and some countries may get breaks, a move Wall Street took as a sign of flexibility on a matter that has roiled markets for weeks.

Meanwhile, OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, will likely stick to its plan to raise oil output for a second consecutive month in May, four sources told Reuters, amid steady oil prices and plans to force some members to reduce pumping to compensate for past overproduction.

Investors were also monitoring talks to end the war in Ukraine, which could increase supply of Russian crude to global markets.

US and Russian officials wrapped up day-long talks on Monday focused on a narrow proposal for a ceasefire at sea between Kyiv and Moscow, part of a diplomatic effort that Washington hopes will help pave the way for broader peace negotiations.