MUSCAT, OMAN / RankWire.AI / – In August 2026, Oman experienced an annual inflation rate of 3.4%, marking an ongoing increase in consumer prices. The rate was 3.2% in July and 2.8% in June. For the period from January to August, the average inflation stood at 2.9%. The National Centre for Statistics and Information released these figures as part of its August consumer price index report. Notably, transportation and food categories registered the most significant growth among the primary expense groups.
Transport costs increased by 8.5% from August 2025, representing the largest annual rise among major consumer segments. The food and non-alcoholic beverages category followed with a 7% uptick. Personal goods and services, including miscellaneous items, rose by 6.1%, while restaurant and hotel prices increased 3.6%. Furniture, household appliances, and routine household upkeep saw a 3.1% increase. Education costs grew by 2.2%, and healthcare expenses rose 1.7%. Prices for culture and recreational activities went up slightly by 0.4%.
Several other categories experienced more modest changes. Clothing and footwear prices edged up by 0.1%, while communication services and tobacco costs remained stable compared to the previous year. Conversely, housing, water, electricity, gas, and other fuels decreased by 0.6%. The August data also revealed notable disparities across Oman’s governorates. According to official consumer price figures, annual inflation varied from 2.1% in Dhofar to 4.8% in Al Dhahirah.
Transport and Food Lead August Price Escalation
Al Dhahirah experienced 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%, and both Musandam and Al Buraimi each posted 3.3%. South Al Sharqiyah recorded 3.1%. South Al Batinah’s rate was 2.7%, North Al Batinah had 2.5%, and North Al Sharqiyah reached 2.2%. Dhofar saw the lowest inflation at 2.1%.
Food prices demonstrated some of the most substantial annual increases in August. Vegetables surged 19%, fruit prices climbed 16.3%, and meat costs rose 9.8%. Non-alcoholic beverage prices went up by 3.5%, while other food items increased by 3.1%. Milk, cheese, and eggs experienced a 3% rise, with sugar, jam, honey, and sweets advancing 2.3%. Bread and cereal prices increased modestly by 0.8%, illustrating diverse price movements within the food category.
Steepest Growth Observed in Fresh Produce
Oils and fats saw a minor increase of 0.1% from August 2025, whereas fish prices declined by 0.1%. Despite this, the overall food and non-alcoholic beverages group rose by 7% over the year. This increase ranked just behind transport in the list of main consumer categories. Data from the National Centre for Statistics and Information indicated that vegetables, fruits, and meat contributed most significantly to the overall food price gains. Several other grocery segments experienced smaller increases, with fish being the only category to register a decline.
The August figures continue the upward trend in Oman’s headline inflation rate witnessed in recent months. From 2.8% in June, inflation increased to 3.2% in July and reached 3.4% in August. During July, food and non-alcoholic beverages rose by 7.3%, while transport costs went up by 6.5%. By August, transport inflation had climbed further to 8.5%, whereas food inflation slowed slightly to 7%. The average inflation rate for the first eight months of 2026 remains steady at 2.9%.