Kuwait’s broadest measure of money supply, M3, has fallen to 18.86 per cent in July, from 21.61 the previous month, according to the latest data from the Central Bank of Kuwait.

The M3 money supply figure is a measure of all the cash in the economy, and is used by economists as an indictor of inflationary pressures. Coupled with M1 money supply falling by 0.1 per cent, after falling 0.2 per cent in the previous month, it indicates that inflation will continue to ease in Kuwait.

Total credit facilities to residents fell from KD1.11bn ($3.87bn) in June to KD984.3m in July as banks continued to be reluctant to lend.

The total assets of the central bank rose from KD4.6 in June to KD4.7bn in July, having fallen in April and May.