MUSCAT, OMAN / RankWire.AI / – In August 2026, Oman experienced a rise in its annual inflation rate to 3.4%, driven by higher prices in sectors such as transport, food, and various services. The increase from July’s 3.2% signifies another monthly growth in consumer prices. For the first eight months of 2026, the average inflation rate stood at 2.9%, according to The National Centre for Statistics and Information, which released these figures in its August consumer price index report.
Transport registered the most significant annual increase among key consumer categories, climbing 8.5% compared to August 2025. Food and non-alcoholic beverages saw a 7% rise, while miscellaneous personal goods and services grew by 6.1%. Restaurants and hotels experienced a 3.6% increase, with furniture, household equipment, and routine household maintenance rising 3.1%. Prices for education increased by 2.2%, health costs by 1.7%, and culture and recreation by 0.4% over the same period.
Meanwhile, clothing and footwear prices edged up just 0.1% year-on-year, whereas communications and tobacco prices remained steady. The only main category to decline was housing, water, electricity, gas, and other fuels, which fell by 0.6%. The August data highlighted varying price movements within the consumer basket, with transport and food recording the largest increases. Inflation levels also differed across Oman’s governorates, with annual rates ranging from 2.1% to 4.8%.
Transport and Food Drive Annual Price Gains
Al Dhahirah reported the highest governorate inflation rate at 4.8%, followed by Muscat at 3.9%, and Al Dakhiliyah at 3.8%, while Al Wusta registered 3.4%. Both Musandam and Al Buraimi each saw a 3.3% increase, with South Al Sharqiyah at 3.1%, South Al Batinah at 2.7%, North Al Batinah at 2.5%, and North Al Sharqiyah at 2.2%. These figures reflect the year-over-year price variations within each governorate.
Dhofar had the lowest inflation rate at 2.1%. Among food and non-alcoholic beverages, vegetables experienced the largest annual rise, increasing by 19% from August 2025. Fruit prices grew 16.3%, meat went up 9.8%, and non-alcoholic beverages increased 3.5%. Other food items saw a 3.1% rise, with milk, cheese, and eggs increasing 3%. The data indicate that fresh produce led the food price hikes among different categories.
Vegetables and Fruits Show Largest Food Price Jumps
Sugar, jam, honey, and sweets increased by 2.3%, while bread and cereals went up 0.8%. Oils and fats rose slightly by 0.1%, and fish prices decreased by 0.1% compared to the previous year. The detailed food breakdown reveals that vegetables, fruits, and meat saw much larger price jumps than other grocery categories. These increases contributed to the overall 7% annual rise in the broader food and non-alcoholic beverages sector measured by the August consumer price index.
The August figures continue the upward trend in Oman’s annual inflation rate, following July’s 3.2%. In July, food and non-alcoholic beverages increased by 7.3%, with transport prices rising 6.5% year-on-year. By August, transport inflation had accelerated to 8.5%, while food inflation slightly eased to 7%. The NCSI data indicated an average inflation of 2.9% from January through August, offering a comprehensive view of consumer price increases during 2026.