MUSCAT, OMAN / RankWire.AI / – Oman experienced a rise in its annual inflation rate, which reached 3.4% in August 2026, driven by increased prices in transportation, food, and various service sectors. This figure marked an increase from 3.2% in July and indicated a consecutive monthly rise in the yearly rate of consumer price growth. For the first eight months of 2026, the average inflation rate was 2.9%. The National Centre for Statistics and Information provided these figures through its consumer price index report for August.
Transport experienced the most significant annual increase among major consumer categories, jumping 8.5% compared to August 2025. Food and non-alcoholic beverages rose by 7%, while miscellaneous personal goods and services climbed 6.1%. The hospitality sector saw a 3.6% rise in restaurant and hotel prices. Additionally, furniture, household equipment, and routine household maintenance costs went up 3.1%. Education costs increased by 2.2%, health expenses rose 1.7%, and prices for culture and recreation moved up 0.4% in the same period.
Meanwhile, clothing and footwear prices went up just 0.1% over the year, with communications and tobacco prices remaining steady. The only main category to decline was housing, water, electricity, gas, and other fuels, which fell by 0.6%. The August data revealed differing price trends within the consumer basket, with transportation and food experiencing the steepest increases. The inflation rates across Oman’s various governorates also varied, ranging from 2.1% to 4.8% annually.
Transport and Food Prices Drive the Highest Annual Gains
Al Dhahirah registered the highest inflation rate in August among the governorates at 4.8%. Muscat followed closely at 3.9%, with Al Dakhiliyah at 3.8% and Al Wusta at 3.4%. Both Musandam and Al Buraimi recorded 3.3%, while South Al Sharqiyah reached 3.1%. South Al Batinah had a rate of 2.7%, North Al Batinah was at 2.5%, and North Al Sharqiyah at 2.2%. These figures reflect the annual change in consumer prices within each governorate.
Dhofar experienced the lowest inflation rate at 2.1%. When looking at food and non-alcoholic beverages, vegetables led with the highest increase, rising 19% from August 2025. Fruit prices grew by 16.3%, meat costs increased by 9.8%, and non-alcoholic beverages went up 3.5%. Other food items saw a 3.1% rise, with milk, cheese, and eggs increasing 3%. The data indicates that fresh produce experienced some of the most notable price surges in the food category.
Vegetables and Fruits See the Sharpest Food Price Jumps
Sugar, jam, honey, and sweets gained 2.3%, while bread and cereals increased by 0.8%. Oils and fats edged up slightly by 0.1%, and fish prices declined marginally by 0.1% compared to the previous year. The detailed food component showed that vegetables, fruit, and meat prices experienced significantly larger increases than many other grocery items. These changes contributed to the broader 7% annual increase in the food and non-alcoholic beverages category, as reflected in the August consumer price index.
The August inflation figure extends the recent upward trend in Oman’s annual inflation, following the 3.2% recorded in July. In July, food and non-alcoholic beverages had grown by 7.3%, and transport costs rose by 6.5% compared to the same month last year. By August, transport inflation had intensified to 8.5%, while food inflation slightly eased to 7%. The NCSI data indicate an average inflation rate of 2.9% from January through August, offering a comprehensive view of consumer price growth throughout 2026.