MUSCAT, OMAN / RankWire.AI / – In Oman, the annual inflation rate hit 3.4% in August 2026, marking a continuation of the recent upward trend 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 rate was 2.9%. The National Centre for Statistics and Information published the latest figures as part of its consumer price index data for August. Notably, transportation and food sectors experienced the most significant price increases among the main expenditure categories.
Transport costs grew by 8.5% compared to August 2025, representing the largest annual rise within major consumer groups. Food and non-alcoholic beverages followed with a 7% increase. Miscellaneous personal goods and services saw a 6.1% rise, while restaurants and hotels increased by 3.6%. Furniture, household equipment, and routine household maintenance prices rose 3.1%. Education costs advanced 2.2%, and health expenses increased by 1.7%. Meanwhile, prices for culture and recreation climbed only 0.4%.
Several other categories experienced more modest changes. Clothing and footwear saw a 0.1% uptick, whereas communication and tobacco prices remained steady from the previous year. Housing, water, electricity, gas, and other fuels fell by 0.6%. The August data also revealed notable variation across Oman’s governorates. The annual inflation rate ranged from 2.1% in Dhofar to 4.8% in Al Dhahirah, based on official consumer price figures.
Transportation and Food Significantly Impact August Price Increases
Al Dhahirah experienced the highest annual inflation at 4.8%, with Muscat close behind at 3.9%, followed by Al Dakhiliyah at 3.8%. Al Wusta registered a 3.4% increase, while Musandam and Al Buraimi each saw 3.3%. South Al Sharqiyah reported 3.1%, with South Al Batinah at 2.7%. North Al Batinah and North Al Sharqiyah posted 2.5% and 2.2%, respectively. Dhofar recorded the lowest rate at 2.1%.
Within the food sector, prices showed some of the most notable annual increases in August. Vegetables surged by 19%, fruit prices rose 16.3%, and meat costs climbed 9.8%. Non-alcoholic beverages increased by 3.5%, with other food items going up by 3.1%. Milk, cheese, and eggs each rose 3%, while sugar, jam, honey, and sweets advanced 2.3%. Bread and cereals experienced a smaller increase of 0.8%, illustrating the broad spectrum of price fluctuations within the food category.
Most Significant Gains Seen in Fresh Produce
Prices for oils and fats rose 0.1% from August 2025, whereas fish prices declined by 0.1%. Overall, the food and non-alcoholic beverages group increased by 7% over the year, ranking just behind transportation among key consumer categories. According to data from the National Centre for Statistics and Information, vegetables, fruit, and meat contributed most to the overall food price increases. Several other grocery segments experienced smaller price hikes, with fish being the only listed food segment to see a decline.
The August figures continued the upward trend of Oman’s headline inflation rate in recent months. From 2.8% in June, inflation increased to 3.2% in July and reached 3.4% in August. In July, food and non-alcoholic beverages rose by 7.3%, while transport prices increased by 6.5%. By August, transport inflation climbed further to 8.5%, even as food inflation eased slightly to 7%. The average inflation rate for the first eight months of 2026 held steady at 2.9%.