Price debate dominates Kuwait election campaign

By Ulf Laessing

KUWAIT, May 15 (Reuters) - Kuwaitis tuck into the sumptuous mounds of rice and meat traditionally on offer at campaign rallies, but soaring food prices have left a bitter taste in voters' mouths in the runup to Saturday's election.

"Rising prices; it is a plague that is eating us. Rising prices of housing and food," Hashem Saad said on the sidelines of a rally, before heading to the heavily-laden buffet table.

Inflation has taken centre stage in the Gulf Arab state's election campaign, with candidates across the political spectrum promising more subsidies and demanding the state spend an oil-driven surplus that topped $43 billion last fiscal year.

Inflation rose to a record 9.5 percent in January, driven by rising food costs in a desert state that relies on imports.

In February, the government raised pay for the public sector, which employs more than 90 percent of Kuwaitis, to help ordinary people cope with rising prices.

It was a dispute with parliament, which was pushing for another raise, that finally prompted the cabinet to resign in March, bringing a long-running political crisis to a head.

Kuwait's ruler dissolved parliament in response and set new election for May 17, but with prices still rising, inflation is likely to remain a hot political issue in the next chamber.

"I, along with other MPs, presented a request to establish a fund for 25 percent of Kuwait's investments, and the profit from these investments will be distributed in cash to Kuwaitis," Islamist candidate Waleed al-Tabtabai told supporters.