MUSCAT, OMAN / RankWire.AI / – Oman’s year-on-year inflation rate reached 3.4% in August 2026, marking a continued upward trend in consumer prices. The inflation rate stood at 3.2% in July and 2.8% in June, with the average inflation for the period from January to August reaching 2.9%. The National Centre for Statistics and Information released these latest figures as part of its August consumer price index report, highlighting significant increases in transport and food expenses among the key expenditure categories.
Transport costs experienced an 8.5% rise from August 2025, representing the highest annual growth among the primary consumer sectors. Following closely were food and non-alcoholic beverages, which saw a 7% increase. The miscellaneous category of personal goods and services grew by 6.1%, while expenditures on restaurants and hotels increased by 3.6%. Additionally, furniture, household equipment, and routine maintenance costs rose by 3.1%, with education prices climbing by 2.2% and health-related expenses going up by 1.7%. The prices of culture and recreation saw the smallest change, with an increase of only 0.4%.
Some categories experienced minimal price fluctuations, with clothing and footwear edging up by 0.1%, and communication and tobacco costs remaining stable compared to the previous year. Conversely, the housing, water, electricity, gas, and other fuels sector saw a slight decline of 0.6%. The August data also revealed notable regional disparities within Oman’s governorates; annual inflation varied from 2.1% in Dhofar to 4.8% in Al Dhahirah, based on official consumer price figures.
Transportation and Food Prices Lead August’s Inflation Growth
Among the governorates, Al Dhahirah experienced the highest annual inflation rate at 4.8%, with Muscat following at 3.9% and Al Dakhiliyah at 3.8%. Al Wusta registered a 3.4% increase, while Musandam and Al Buraimi each recorded 3.3%. South Al Sharqiyah’s inflation stood at 3.1%, with South Al Batinah at 2.7%, North Al Batinah at 2.5%, and North Al Sharqiyah at 2.2%. Dhofar maintained the lowest rate at 2.1%. Food items saw some of the most significant yearly increases, notably vegetables which rose by 19%, and fruits with a 16.3% hike. Meat prices increased by 9.8%, and non-alcoholic beverages experienced a 3.5% increase. Other food categories collectively saw a 3.1% rise, with milk, cheese, and eggs up 3%, and sugar, jam, honey, and sweets advancing by 2.3%. Bread and cereals experienced a modest 0.8% growth, illustrating the diverse movement of food prices during this period.
Vegetables, Fruits, and Meat Lead the Surge in Food Costs
Increases in oils and fats were minimal, at 0.1%, while fish prices saw a slight decline of 0.1%. The overall food and non-alcoholic beverages category, however, registered a 7% rise over the year, positioning it behind transport in terms of main consumer expense growth. According to the data from the National Centre for Statistics and Information, vegetables, fruits, and meat contributed most significantly to the food price increases, while other grocery segments experienced smaller hikes, with fish being the only category to decline within the food group.
The August figures continue the trend of rising headline inflation in Oman in recent months, with the annual rate climbing from 2.8% in June to 3.2% in July and reaching 3.4% in August. In July, the inflation for food and non-alcoholic beverages increased by 7.3%, and transport costs were up by 6.5%. By August, transport inflation had accelerated further to 8.5%, while food inflation slightly decreased to 7%. The average inflation rate for the first eight months of 2026 remained steady at 2.9%.