AFP: KUWAIT CITY — Central Bank governor Sheikh Salem Abdulaziz al-Sabah warned on Wednesday that oil-rich Kuwait was faced with a "national challenge" after inflation hit 9.5 percent in January.
Sheikh Salem called for "coordination in various national economic policies to curb rising inflation," in a statement carried by the official KUNA news agency.
"Inflation constitutes a national challenge and was the result of local and foreign factors," he said.
The government Central Statistic Office said last month that the consumer price index in January hit 126.4 points, compared to 115.4 points a year ago, because of a sharp increase in housing services and the price of food.
The cost of housing services rose 16.1 percent in January compared to a year ago, while the price of beverages and tobacco rose 15.1 percent during the same period.
Medical care and education rose by 12 percent, household services 10 percent and foodstuffs by 7.7 percent.
The governor said inflation in Kuwait remained at around 1.1 percent between 2000 and 2004, and jumped to 4.1 percent in 2005 and to an annual average of 5.5 last year.
However, monthly inflation rates began rising rapidly since July last year. High Inflation in Kuwait a National Challenge: Governor >>>
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