MUSCAT, OMAN / RankWire.AI / – In August 2026, Oman experienced an increase in its annual inflation rate to 3.4%, driven by rising costs across transport, food, and various service sectors. This marks a slight uptick from 3.2% in July and indicates a continued upward trend in the yearly consumer price growth. Over the first eight months of 2026, the average inflation rate was recorded at 2.9%. The data was released by The National Centre for Statistics and Information through its August consumer price index figures.
Transport experienced the highest annual increase among primary consumer categories, rising by 8.5% compared to August 2025. Food and non-alcoholic beverages grew by 7%, while miscellaneous personal goods and services went up by 6.1%. The costs for restaurants and hotels increased by 3.6%, with furniture, household equipment, and routine household maintenance rising by 3.1%. Education expenses saw a 2.2% increase, health-related costs climbed by 1.7%, and prices for culture and recreation edged up by 0.4% over the same period.
Prices for clothing and footwear saw a marginal 0.1% rise during the year, whereas communication and tobacco prices remained stable. Housing, water, electricity, gas, and other fuels decreased by 0.6%, making this the only major group to experience a decline. The August data revealed varied price changes across the consumer basket, with transport and food recording the most significant increases. Inflation rates also differed among Oman’s governorates, ranging from 2.1% to 4.8% annually.
Transportation and Food Prices Drive Yearly Inflation
In August, Al Dhahirah registered the highest governorate inflation rate at 4.8%. Muscat followed closely at 3.9%, while Al Dakhiliyah posted 3.8%, and Al Wusta reached 3.4%. Both Musandam and Al Buraimi each recorded 3.3%, with South Al Sharqiyah at 3.1%. South Al Batinah’s rate was 2.7%, North Al Batinah’s stood at 2.5%, and North Al Sharqiyah registered 2.2%. These percentages reflect the yearly price changes specific to each governorate.
Dhofar exhibited the lowest inflation rate at 2.1%. Within the food and non-alcoholic beverages category, vegetables experienced the most significant annual increase, rising by 19% from August 2025. Fruit prices went up by 16.3%, meat prices increased by 9.8%, and non-alcoholic beverages rose by 3.5%. Other food products’ prices increased by 3.1%, with milk, cheese, and eggs advancing by 3%. The data indicates that fresh produce registered some of the sharpest food price hikes.
Vegetables and Fruit Lead Food Price Surges
Sugar, jam, honey, and sweets experienced a 2.3% rise, while bread and cereals grew by 0.8%. Oils and fats saw a marginal increase of 0.1%, and fish prices declined by 0.1% compared to the previous year. The food category’s detailed breakdown shows that vegetables, fruits, and meat prices increased at a much faster rate than several other grocery items. These shifts contributed to the 7% annual rise in the overall food and non-alcoholic beverages group measured by the August consumer price index.
The August data underscores a continuation of Oman’s recent inflation trend, following the 3.2% rate observed in July. In July, food and non-alcoholic beverages increased by 7.3%, with transport prices climbing 6.5% from the previous year. By August, transport inflation had intensified to 8.5%, while food inflation slowed slightly to 7%. The NCSI figures indicate an average inflation rate of 2.9% from January through August, offering a comprehensive view of consumer price growth throughout 2026.