MUSCAT, OMAN / RankWire.AI / – In August 2026, Oman experienced a rise in its annual inflation rate to 3.4%, with notable increases observed in transportation, food, and several service sectors. This figure represents a slight uptick from July’s 3.2%, indicating a continued monthly growth in consumer prices. The National Centre for Statistics and Information reported these figures as part of its August consumer price index update, noting that the average inflation rate for the first eight months of 2026 reached 2.9%.
Transport registered the highest annual increase among major consumer groups, surging 8.5% from August 2025. Prices for food and non-alcoholic beverages grew by 7%, while miscellaneous personal goods and services rose 6.1%. The hospitality sector saw a 3.6% increase in restaurants and hotels, with furniture, household equipment, and routine maintenance rising 3.1%. Additionally, education costs went up 2.2%, health expenses increased 1.7%, and culture and recreation prices edged 0.4% higher over the same period.
Meanwhile, clothing and footwear prices saw a minimal increase of 0.1%, whereas communication and tobacco costs remained stable. Housing, water, electricity, gas, and other fuels experienced a decline of 0.6%, marking the only major category with a decrease. The August data reveal varied price movements across the consumer basket, with transportation and food costs recording the most significant rises. Inflation rates also differed across Oman’s governorates, ranging from 2.1% to 4.8% annually.
Transport and Food Prices Drive the Yearly Inflation Surge
Al Dhahirah exhibited the highest inflation rate among governorates at 4.8% in August. Muscat followed with 3.9%, while Al Dakhiliyah and Al Wusta posted 3.8% and 3.4%, respectively. Both Musandam and Al Buraimi recorded 3.3%, South Al Sharqiyah reached 3.1%, South Al Batinah was at 2.7%, North Al Batinah stood at 2.5%, and North Al Sharqiyah at 2.2%. These figures reflect the annual variations in prices within each governorate.
Dhofar registered the lowest at 2.1%. Food and non-alcoholic beverages saw the largest annual increases in vegetables, which jumped 19% from August 2025. Fruit prices grew 16.3%, while meat costs increased 9.8%, and non-alcoholic beverages rose 3.5%. Other food categories experienced a 3.1% increase, with milk, cheese, and eggs advancing 3%. The data indicate that fresh produce contributed significantly to the food price hikes during the year.
Vegetables and Fruits Lead the Food Price Escalation
Sugar, jam, honey, and sweets increased 2.3%, whereas bread and cereals went up by 0.8%. Oils and fats saw a slight rise of 0.1%, while fish prices declined by 0.1% compared to the previous year. The detailed food index shows that vegetables, fruits, and meat experienced larger price increases than other grocery items. These changes contributed to the overall 7% annual rise in the food and non-alcoholic beverages segment measured by the August consumer price index.
The August figures extended the recent upward trend in Oman’s annual inflation, following July’s rate of 3.2%. In July, prices for food and non-alcoholic beverages increased by 7.3%, and transport costs rose 6.5% year-over-year. By August, transport inflation had climbed further to 8.5%, while food inflation slightly eased to 7%. The NCSI data indicates an average inflation of 2.9% from January through August, offering a comprehensive view of consumer price increases throughout 2026.