MUSCAT, OMAN / RankWire.AI / – Oman’s annual inflation rate reached 3.4% in August 2026, continuing a recent upward trend in consumer prices. The inflation rate was 3.2% in July and 2.8% in June. The average inflation from January to August stood at 2.9%. The National Centre for Statistics and Information released the latest figures through its August consumer price index report. Notably, transportation and food categories saw the most pronounced increases among key expenditure areas.
Transport costs climbed by 8.5% compared to August 2025, marking the largest yearly jump across major consumer groups. Food and non-alcoholic beverages followed with a 7% rise. The miscellaneous personal goods and services sector increased by 6.1%, while restaurants and hotels saw a 3.6% uptick. Furniture, household equipment, and routine household upkeep costs grew by 3.1%. Education expenses increased by 2.2%, with health-related costs rising 1.7%. Culture and recreation prices experienced a modest increase of 0.4%.
Price variations in other segments remained relatively limited. Clothing and footwear saw a marginal increase of 0.1%, while communication and tobacco prices stayed flat compared to the previous year. Housing, water, electricity, gas, and other fuels declined by 0.6%. The August data also highlighted notable differences across Oman’s governorates. According to official consumer price figures, annual inflation ranged from 2.1% in Dhofar to 4.8% in Al Dhahirah.
Transportation and Food Costs Propel Price Growth in August
Al Dhahirah recorded the highest annual inflation rate among the governorates at 4.8%. Muscat followed with 3.9%, while Al Dakhiliyah registered 3.8%. Al Wusta reported 3.4%, with Musandam and Al Buraimi each at 3.3%. South Al Sharqiyah saw a 3.1% increase. South Al Batinah stood at 2.7%, North Al Batinah at 2.5%, and North Al Sharqiyah at 2.2%. Dhofar experienced the lowest inflation rate at 2.1%.
Food prices showed some of the most substantial annual increases in August. Vegetables rose by 19%, while fruit prices jumped by 16.3%. Meat costs increased by 9.8%, and non-alcoholic beverages went up by 3.5%. Other food categories experienced a 3.1% rise, with milk, cheese, and eggs gaining 3%. Sugar, jam, honey, and sweets advanced by 2.3%. Bread and cereals saw a smaller increase of 0.8%, reflecting the wide variance within food prices.
Vegetables and Fruits Lead the Price Hikes
Oils and fats rose marginally by 0.1% from August 2025, while fish prices dipped by 0.1%. Despite these small changes, the overall food and non-alcoholic beverages group still experienced a 7% increase over the year, ranking just behind transport as the leading contributor among consumer categories. Data from the National Centre for Statistics and Information indicates that vegetables, fruits, and meat contributed most significantly to food-related price increases. Several other grocery segments saw smaller gains, with fish being the only food group to decline.
The August inflation figures continue the trend of rising headline inflation in Oman over recent months. After reaching 2.8% in June, inflation increased to 3.2% in July and then to 3.4% in August. During July, food and non-alcoholic beverages experienced a 7.3% rise, while transport costs increased by 6.5%. By August, transport inflation had climbed further to 8.5%, whereas food inflation eased slightly to 7%. The average inflation rate for the first eight months of 2026 remains at 2.9%.