Kuwait readies inflation battle plan

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BATTLE PLAN: Kuwait is preparing a plan to combat soaring inflation in the Gulf state. (Getty Images)

Kuwait will next week unveil a plan to combat inflation, a government minister told newswire Reuters on Tuesday, after price rises hit record levels in the oil-exporting nation.

Commerce and Industry Minister Ahmed Baqer, appointed last week, told state news agency Kuna on Monday the ministry would clamp down on price rigging and increase subsidies for basic commodities affected by a global surge in food costs.

Inflation in Kuwait, the only Gulf Arab state to have abandoned its currency peg to the US dollar, rose to a record 10.14% in February, driven by higher food and housing costs. The figures were released on Sunday.

Baqer told Reuters he would present a report to the Gulf Arab state's newly-elected parliament next week with measures to combat inflation.

"There will be a report submitted to parliament within a week," he said, adding that fighting rising prices of foods and basic commodities took priority.

He declined to say what specific measures the government planned to curb rising prices. Local newspaper Al-Watan said last month Kuwait's government had asked a local supermarket chain to submit monthly reports on prices of goods as part of an effort to tame inflation.

Kuwait increased subsidies on some food items and building materials such as steel and cement to control unjustified rise in prices, Kuna reported in February.

The minister also said a much-delayed law to create a financial regulator could be passed by parliament by year end.

"We hope it will be passed before the end of this year," he told Reuters.

The law is part of plans to attract more foreign investment as Kuwait wants to emulate the success of Gulf neighbours Dubai and Bahrain which have become financial hubs.

Key projects had been stuck in the last parliament on the back of a row with the cabinet. (Reuters)

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