Since February, when inflation in Kuwait hit 10.14 per cent, inflation has barely increased by 1 per cent, according to Bloomberg.

Economists say that government measures to curb bank lending and cool the housing market are beginning to take effect.

In Bahrain, the Central Informatics Department said that inflation for the first five months of the year was 3.1 per cent, much lower than the 6.2 per cent reported for the year to April.

In both countries food prices and rental costs remain the main drivers of inflation, although food inflation in Kuwait has fallen slightly to 10.8 per cent in May, from 11.9 per cent.