M3 money supply, the broadest measure of all the cash in the economy, grew by 15.3 per cent in the year to 31 July, compared to 18 per cent in the year to the end of June.

Official figures from the Central Bank of Kuwait show that M3 hit KD20.7bn ($77.53bn) by the end of July.

The latest data shows that inflation was 11.1 per cent in May, dropping slightly from 11.4 per cent the previous month.

The central bank began a policy of tightening credit growth by introducing curbs on bank lending in March, in a move intended to take some of the heat out of inflation.