MUSCAT, OMAN / RankWire.AI / – According to the National Centre for Statistics and Information, Oman’s annual inflation rate increased to 3.4% in August 2026, driven by rising prices in transport, food, and various service categories. This figure represents a rise from 3.2% in July and indicates a continued upward trend in annual consumer price inflation. For the first eight months of 2026, the average inflation rate stood at 2.9%, as reported by the statistical authority.
Transport experienced the most significant annual price increase among key consumer groups, climbing by 8.5% compared to August 2025. Prices for food and non-alcoholic beverages rose 7%, while miscellaneous personal goods and services grew by 6.1%. Restaurants and hotels saw a 3.6% increase, with furniture, household equipment, and routine household maintenance up 3.1%. Costs related to education increased 2.2%, healthcare expenses rose 1.7%, and prices for culture and recreation edged higher by 0.4% during the same period.
Prices for clothing and footwear saw a modest increase of 0.1% over the year, whereas communication services and tobacco remained unchanged. The only category to see a decline was housing, water, electricity, gas, and other fuels, which fell by 0.6%. The August statistics revealed varying price movements within the consumer basket, with transport and food experiencing the largest upward shifts. Inflation rates also differed across Oman’s governorates, ranging from 2.1% to 4.8% annually.
Transport and Food Prices Drive Yearly Inflation
In August, Al Dhahirah registered the highest inflation rate among governorates at 4.8%. Muscat followed at 3.9%, then Al Dakhiliyah at 3.8%, and Al Wusta at 3.4%. Both Musandam and Al Buraimi posted 3.3%, while South Al Sharqiyah reached 3.1%. South Al Batinah recorded 2.7%, North Al Batinah 2.5%, and North Al Sharqiyah 2.2%. These figures reflect the annual variation in consumer prices across different regions of Oman.
Dhofar had the lowest rate at 2.1%. Within the food and non-alcoholic beverages group, vegetables experienced the highest annual increase, jumping 19% from August 2025. Fruit prices went up 16.3%, meat costs increased 9.8%, and non-alcoholic beverages rose 3.5%. Other food items saw a 3.1% rise, with milk, cheese, and eggs gaining 3%. Notably, fresh produce recorded some of the most substantial food price jumps.
Vegetables and Fruit Show Largest Food Price Hikes
Prices for sugar, jam, honey, and sweets increased by 2.3%, while bread and cereals went up 0.8%. Oils and fats moved slightly higher by 0.1%, whereas fish prices declined marginally by 0.1% compared to the previous year. The detailed food category data reveals that vegetables, fruit, and meat experienced more pronounced price increases than many other grocery items. These changes contributed to the overall 7% annual growth in the broader food and non-alcoholic beverages segment as measured in the August consumer price index.
This August reading signifies a continuation of Oman’s recent inflation trend, following the 3.2% rate recorded in July. In July, the increase was driven by a 7.3% rise in food and non-alcoholic beverages and a 6.5% jump in transport prices year-on-year. By August, transport inflation had accelerated to 8.5%, while food inflation eased slightly to 7%. The NCSI data indicates that the average inflation rate for January through August was 2.9%, providing a comprehensive view of consumer price growth during 2026.