MUSCAT, OMAN / RankWire.AI / – Oman’s annual inflation rate climbed to 3.4% in August 2026, indicating a continuing upward trend in consumer prices. The rate was 3.2% in July and had previously been 2.8% in June. The average inflation rate from January to August now stands at 2.9%. The National Centre for Statistics and Information provided the latest data through its consumer price index report for August, highlighting notable increases in transport and food costs among primary expenditure categories.
Transport expenses experienced an 8.5% rise compared to August 2025, marking the largest year-on-year increase among key consumer sectors. Food and non-alcoholic drinks followed, with a 7% growth. Other categories such as miscellaneous personal goods and services saw a 6.1% rise, while restaurants and hotels increased by 3.6%. Furniture, household equipment, and routine household maintenance costs went up by 3.1%. Education expenses increased by 2.2%, and healthcare costs grew by 1.7%. Prices for culture and recreation saw a smaller increase of 0.4%.
Certain other segments experienced more modest price shifts. Clothing and footwear costs edged up by 0.1%, while communication and tobacco prices remained stable compared to the previous year. Housing, water, electricity, gas, and other fuels decreased by 0.6%. The August data also revealed significant variation across Oman’s governorates, with annual inflation rates ranging from 2.1% in Dhofar to 4.8% in Al Dhahirah, based on official consumer price statistics.
Transport and Food Prices Lead August Inflation Growth
Al Dhahirah recorded the highest annual inflation rate among the regions at 4.8%. Muscat followed with 3.9%, and Al Dakhiliyah registered 3.8%. Al Wusta’s inflation was 3.4%, while Musandam and Al Buraimi each experienced a 3.3% increase. South Al Sharqiyah’s rate 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 exhibited the lowest inflation rate at 2.1%.
Within food prices, some of the most notable annual increases occurred in August. Vegetables surged by 19%, fruits by 16.3%, and meat prices by 9.8%. Non-alcoholic beverages rose by 3.5%, with other food items increasing by 3.1%. Milk, cheese, and eggs experienced a 3% jump, while sugar, jam, honey, and sweets went up by 2.3%. Bread and cereals increased by 0.8%, reflecting the wide variability within the food category’s price movements.
Fresh Produce Prices Experience Largest Spikes
Prices for oils and fats increased slightly by 0.1% since August 2025, whereas fish prices declined by 0.1%. Overall, the broader food and non-alcoholic beverages category saw a 7% rise over the past year, which ranks behind transportation in terms of primary consumer expenditure increases. Data from the National Centre for Statistics and Information shows that vegetables, fruits, and meats contributed most significantly to the annual gains within the food sector. Several other grocery segments experienced smaller increases, and fish was the only food category that declined during this period.
The August figures continue the upward trajectory of Oman’s headline inflation rate observed in recent months. From June’s 2.8%, inflation increased to 3.2% in July and reached 3.4% in August. In July, food and non-alcoholic beverages had grown by 7.3%, while transport costs were 6.5% higher. By August, transport inflation had further increased to 8.5%, while food inflation slowed slightly to 7%. The average inflation rate for the first eight months of 2026 has remained steady at 2.9%.