Kuwait’s annualised consumer price inflation rose to almost 3 per cent in May, according to a new report published by National Bank of Kuwait.

“Inflation in the consumer price index rose from 2.7 per cent year on year in April, to 2.9 per cent in May,” NBK said. “The slight rise in inflation was mostly driven by core inflation (excluding food), which also climbed from 2.7 per cent year on year in April to 2.9 per cent in May.”

NBK said cost pressures are expected to remain firm, particularly in housing, and that food prices could start to climb.

“However, upward pressure on the overall inflation rate should be contained and we expect the overall inflation rate to average at 3 per cent year on year in 2014,” NBK said.