MUSCAT, OMAN / RankWire.AI / – In the broader economic context, Oman experienced an increase in its annual inflation rate, which reached 3.4% in August 2026. This rise was driven by higher costs in transportation, food, and various service sectors, reflecting ongoing inflationary pressures. The rate was slightly above the 3.2% recorded in July and represented another month of increasing annual consumer prices. For the first eight months of 2026, the average inflation rate stood at 2.9%. The National Centre for Statistics and Information announced these figures in its August consumer price index report.
Among the key categories, transportation experienced the most significant yearly increase, rising 8.5% from August 2025. Food and non-alcoholic beverages saw a 7% uptick, while miscellaneous personal goods and services climbed 6.1%. Prices at restaurants and hotels increased by 3.6%, and furniture, household equipment, and routine household maintenance rose 3.1%. Education costs grew 2.2%, health expenses increased 1.7%, and culture and recreation prices edged up 0.4% over the same period.
In contrast, clothing and footwear prices saw a marginal increase of 0.1%, and prices for communications and tobacco remained unchanged. The only main consumer group to decline was housing, water, electricity, gas, and other fuels, which fell 0.6%. The August data highlighted diverse price movements across the consumer basket, with transport and food registering the largest increases. Inflation rates also varied across Oman’s governorates, ranging from 2.1% to 4.8% annually.
Transport and Food Prices Dominate Annual Inflation Trends
Al Dhahirah posted the highest governorate inflation rate at 4.8% in August. Muscat followed at 3.9%, while Al Dakhiliyah registered 3.8% and Al Wusta reached 3.4%. Both Musandam and Al Buraimi recorded 3.3%, and South Al Sharqiyah was at 3.1%. The inflation rate in South Al Batinah was 2.7%, North Al Batinah at 2.5%, and North Al Sharqiyah at 2.2%. These figures reflect the annual variation in consumer prices across the different regions.
Dhofar experienced the lowest inflation rate among governorates at 2.1%. In terms of food and non-alcoholic beverages, vegetables led the price increases with a 19% rise from August 2025. Fruit prices grew by 16.3%, meat prices increased 9.8%, and non-alcoholic beverages went up 3.5%. Other food categories also saw price hikes, with milk, cheese, and eggs rising 3%. The data indicate that fresh produce, particularly vegetables and fruit, experienced some of the most pronounced food price increases.
Vegetables and Fruits Drive Sharpest Food Price Gains
Sugar, jam, honey, and sweets increased by 2.3%, while bread and cereals rose 0.8%. Oils and fats saw a minimal increase of 0.1%, and fish prices slightly declined by 0.1% compared to the previous year. The detailed food price breakdown shows that vegetables, fruit, and meat experienced significantly larger percentage increases than several other grocery items. These shifts contributed to the overall 7% annual rise in the broader food and non-alcoholic beverages category measured by the August consumer price index.
The August figures mark a continuation of the upward trend in Oman’s annual inflation, following the 3.2% noted in July. In July, food and non-alcoholic beverages increased by 7.3%, and transportation costs rose 6.5%. By August, transportation inflation had accelerated to 8.5%, while food inflation eased slightly to 7%. The National Centre for Statistics and Information reported an average inflation rate of 2.9% from January through August, offering a comprehensive overview of consumer price growth for 2026.