MUSCAT, OMAN / RankWire.AI / – Oman experienced a 3.4% increase in its annual inflation rate in August 2026, marking a continuation of recent upward pressure on consumer prices. The inflation rate was 3.2% in July and 2.8% in June. The average inflation for the period from January to August stood at 2.9%. The National Centre for Statistics and Information published these latest figures within its consumer price index report for August. Notably, transportation and food items registered the most significant increases among primary expenditure categories.
Transport prices climbed by 8.5% compared to August 2025, representing the largest annual gain among key consumer groups. Food and non-alcoholic beverages followed closely with a 7% rise. Additionally, miscellaneous personal goods and services increased by 6.1%, while restaurants and hotels saw a 3.6% growth. Furniture, household equipment, and routine household maintenance costs rose by 3.1%. Education costs advanced by 2.2%, with health expenses up 1.7%. Meanwhile, prices for culture and recreation increased at a smaller rate of 0.4%.
Several other categories experienced more modest price changes. Clothing and footwear saw a slight increase of 0.1%, and communication and tobacco prices remained stable from the previous year. Conversely, housing, water, electricity, gas, and other fuels experienced a decrease of 0.6%. The August figures also highlighted notable disparities across Oman’s governorates, with annual inflation rates ranging from 2.1% in Dhofar to 4.8% in Al Dhahirah, as per official consumer price data.
Transport and Food Contributions to August’s Inflation Surge
Al Dhahirah registered the highest annual inflation rate among the governorates at 4.8%. Muscat followed with 3.9%, while Al Dakhiliyah recorded 3.8%. Al Wusta reported 3.4%, and both Musandam and Al Buraimi each posted 3.3%. South Al Sharqiyah’s inflation was 3.1%. South Al Batinah experienced a 2.7% increase, North Al Batinah stood at 2.5%, and North Al Sharqiyah reached 2.2%. Dhofar recorded the lowest rate at 2.1%.
Food prices in August demonstrated some of the most pronounced annual increases within the CPI. Vegetables surged by 19%, while fruit prices rose by 16.3%. Meat costs increased by 9.8%, with non-alcoholic beverages gaining 3.5%. Other food items rose by 3.1%, with milk, cheese, and eggs advancing 3%. Sugar, jam, honey, and sweets grew by 2.3%. Bread and cereals saw a modest increase of 0.8%, illustrating the diverse price movements across the food sector.
Vegetables and Fruits Lead Price Hikes in Food
Oils and fats saw a minor rise of 0.1% from August 2025, whereas fish prices declined by 0.1%. Despite this, the overall food and non-alcoholic beverages segment increased by 7% over the year. This expansion was second only to transportation among the main consumer categories. The data from the National Centre for Statistics and Information revealed that vegetables, fruits, and meat contributed the most to the overall food inflation. Several other grocery groups experienced smaller increases, with fish being the only listed food segment to register a decline.
The August figures continue the upward trend seen in Oman’s headline inflation over recent months. The annual inflation rate moved up from 2.8% in June to 3.2% in July, then reached 3.4% in August. In July, food and non-alcoholic beverages had increased by 7.3%, while transport costs rose by 6.5%. By August, transport inflation had climbed further to 8.5%, whereas food inflation had slightly eased to 7%. The average inflation rate for the first eight months of 2026 remained steady at 2.9%.