MUSCAT, OMAN / RankWire.AI / – Oman’s annual inflation increased to 3.4% in August 2026, driven by higher costs in transportation, food, and various service sectors. This marks a rise from 3.2% in July and indicates another month of accelerated consumer price growth. The average inflation rate for the first eight months of 2026 reached 2.9%. The National Centre for Statistics and Information released these figures in its August consumer price index report.
Transport experienced the largest year-over-year increase among key consumer categories, climbing 8.5% from August 2025. Food and non-alcoholic beverages saw a 7% rise, while miscellaneous personal goods and services grew by 6.1%. Prices for restaurants and hotels went up by 3.6%, and furniture, household equipment, along with routine household maintenance, increased by 3.1%. Education costs rose 2.2%, healthcare expenses grew by 1.7%, and culture and recreation prices edged higher by 0.4% over the same period.
Clothing and footwear costs increased marginally by 0.1%, while communication and tobacco prices remained stable. Conversely, housing, water, electricity, gas, and other fuels declined by 0.6%, making this the only main category to show a decrease. The August data revealed varied price shifts across the consumer basket, with transport and food experiencing the most significant increases. Inflation rates also differed across Oman’s governorates, ranging from 2.1% to 4.8% annually.
Transport and Food Prices Drive the Yearly Inflation Spike
In August, Al Dhahirah registered the highest inflation rate among governorates at 4.8%. Muscat followed 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’s rate stood at 2.7%, North Al Batinah at 2.5%, and North Al Sharqiyah at 2.2%. These figures reflect the annual price changes specific to each region.
Dhofar experienced the lowest inflation at 2.1%. Within the food and non-alcoholic beverages group, vegetables saw the most substantial annual increase, rising 19% from August 2025. Fruit prices grew by 16.3%, meat by 9.8%, and non-alcoholic beverages by 3.5%. Additionally, other food items increased by 3.1%, with milk, cheese, and eggs advancing 3%. These statistics highlight fresh produce as some of the most significant contributors to food price inflation.
Vegetables and Fruit Register Sharpest Food Price Increases
Sugar, jam, honey, and sweets saw a 2.3% rise, while bread and cereals went up by 0.8%. Oils and fats edged higher by 0.1%, and fish prices declined slightly by 0.1% compared to the previous year. The detailed food categories reveal that vegetables, fruit, and meat experienced much larger percentage increases than several other grocery items. These fluctuations contributed to the 7% overall annual rise in the food and non-alcoholic beverages segment, as measured by the August consumer price index.
The August inflation reading further extended the upward trend seen in Oman’s annual inflation, which was 3.2% in July. In that month, food and non-alcoholic beverages increased by 7.3%, and transport costs rose by 6.5% compared to the same period in 2025. By August, transport inflation had climbed to 8.5%, while food inflation had moderated slightly to 7%. The NCSI data indicated an average inflation rate of 2.9% from January to August, offering a comprehensive view of price changes throughout 2026.