MUSCAT, OMAN / RankWire.AI / – In Oman, August 2026 saw the annual inflation rate increase to 3.4%, driven by rising costs in transportation, food, and various service sectors. This figure, compared to 3.2% in July, signifies a continued upward trend in yearly consumer price inflation. The country’s average inflation rate for the first eight months of 2026 was recorded at 2.9%. The National Centre for Statistics and Information issued these statistics based on its consumer price index for August.
Transport experienced the highest annual growth among key consumer categories, increasing by 8.5% compared to August 2025. Prices for food and non-alcoholic beverages rose by 7%, while miscellaneous personal goods and services climbed 6.1%. Increases were also seen in restaurants and hotels, which went up 3.6%, and furniture, household equipment, and routine household maintenance, which rose 3.1%. Meanwhile, education costs increased 2.2%, health expenses grew 1.7%, and prices for culture and recreation edged higher by 0.4% over the same period.
Clothing and footwear costs saw a marginal rise of 0.1%, whereas communication and tobacco prices remained stable. Conversely, housing, water, electricity, gas, and other fuels declined by 0.6%, making this the only main consumer group to experience a decrease. The August figures reveal diverse shifts in consumer prices, with transportation and food experiencing the most significant increases. Additionally, inflation rates varied across Oman’s governorates, ranging from 2.1% to 4.8% annually.
Transport and Food Costs Drive Annual Price Growth
Al Dhahirah registered the highest inflation rate among the governorates at 4.8% in August. Muscat followed with 3.9%, while Al Dakhiliyah reported 3.8%, and Al Wusta reached 3.4%. Both Musandam and Al Buraimi recorded 3.3%, and South Al Sharqiyah posted 3.1%. South Al Batinah stood at 2.7%, North Al Batinah at 2.5%, and North Al Sharqiyah at 2.2%, reflecting annual price variations across regions.
Dhofar experienced the lowest inflation rate among the governorates at 2.1%. In the food and non-alcoholic beverages segment, vegetables showed the largest annual price increase, jumping by 19% since August 2025. Fruits rose by 16.3%, while meat prices increased 9.8%. Non-alcoholic beverages went up 3.5%, with other food items rising 3.1%, and milk, cheese, and eggs advancing 3%. These figures highlight fresh produce as some of the most significant contributors to food inflation.
Vegetables and Fruits Lead Sharp Food Price Gains
Sugar, jam, honey, and sweets increased by 2.3%, while bread and cereals went up 0.8%. Oils and fats saw a slight rise of 0.1%, and fish prices declined by 0.1% compared to the previous year. The detailed food data indicate that vegetables, fruits, and meat experienced larger price increases than several other grocery categories. These changes helped push the overall food and non-alcoholic beverages group inflation to 7% as measured by the August consumer price index.
The August inflation rate extended the upward trend from July, which recorded a 3.2% increase. In July, food and non-alcoholic beverages saw a 7.3% rise, and transport costs climbed 6.5% year-on-year. By August, transport inflation had escalated to 8.5%, while food inflation slowed slightly to 7%. The NCSI data indicated an average inflation of 2.9% from January to August, offering a comprehensive view of consumer price changes throughout 2026.