Kuwait’s inflation rate inched higher in August 2025, as rising food and beverage costs pushed the annual figure to 2.39%, marking a 0.07% increase compared to the previous month. Citing the data published by the Gulf country’s Central Statistical Bureau, Kuwait News Agency reported that higher prices in other key sectors, including health, clothing, and housing services, as well as household furnishings, communications, and education, contributed to the annual rise.
“The latest analysis follows signs of economic recovery, after the country’s economy returned to positive territory in the first quarter of 2025, recording a 1% year-on-year increase, following seven consecutive quarters of contraction,” the Central Bank of Kuwait said in July.
In September 2025, the International Monetary Fund (IMF) echoed similar views, noting that Kuwait’s economy is on a steady recovery in 2025. The IMF added that headline consumer price index inflation is projected to ease to 2.2% in 2025, down from 2.9% in 2024.
“Data from the Central Bureau of Statistics showed that the consumer price index (inflation) increased locally by 2.39% by the end of last August on an annual basis,” the Kuwait News Agency reported.
While food and beverage prices rose 6.02% year on year, clothing and health expenses increased 3.11% and 2.77%, respectively. In August 2025, costs for household furnishings rose by 3.08%, followed by prices for restaurants and hotels at 1.86% and recreation and culture at 1.61%. Also, transport costs fell by 1.75% in August compared with the same month in 2024.
“Excluding food and beverages, inflation in Kuwait increased by 1.53% year on year and 0.07% month on month in August,” the Kuwait News Agency added.
In September 2025, Fitch Ratings reaffirmed Kuwait’s AA-long-term foreign currency rating with a stable outlook, citing its strong fiscal position and external balance sheet. The United States-based agency further sees the Gulf country’s external balance sheet remaining the strongest among all Fitch-rated sovereigns, with net foreign assets projected to rise to 607% of the GDP in 2025, up from an estimated 576% in 2024.
In December 2025, S&P Global reported that Kuwait’s Purchasing Managers’ Index (PMI) rose to 53.4 from 52.8 in October, marking a four-month high, along with a solid improvement in the non-oil business conditions. The expansion was driven by the strongest new order-related increase since June this year, supported by aggressive marketing and competitive pricing.