A report by Kuwait Finance House (KFH-Reserach) predicted Sunday that the inflation rate in Kuwait is expected to be at 3.5% in 2014. The report noted that the inflation rate in Kuwait increased to 2.6% in November on a monthly bases, while it dropped year over year (y-o-y), according to (KUNA) news agency. Consumer prices in Kuwait moderated further to 2.6% y-o-y in November 2013, a tad lower than 2.7% y-o-y growth recorded in October 2013 due to lower food and beverages prices. During the month, food costs continued to soften to 2.4% y-o-y, much lower than 3.5% y-o-y increase recorded in the previous month. As Kuwait imports most of its food items (approximately 90.0% ) for domestic consumption, it is expected that food price inflation in Kuwait will remain low in the near term, in tandem with declining trends in international food prices. In addition to food, Health care and the "miscellaneous goods and services" category also contributed to the decline in inflation, declining by 0.5% y-o-y and -1.2% y-o-y, respectively. Despite the recent price moderation, accommodative monetary and loose fiscal policy should underpin domestic demand, driving price pressures. Recent credit data released by the Central Bank of Kuwait (CBK) indicate significant growth in private credit, up by 7.7% y-o-y in October 2013.