MUSCAT, OMAN / RankWire.AI / – Oman’s annual inflation rate increased to 3.4% in August 2026, driven by higher prices in transport, food, and various service sectors. The figure compares to 3.2% in July and indicates another monthly rise in the yearly rate of consumer price inflation. For the first eight months of 2026, the average inflation rate was 2.9%. The National Centre for Statistics and Information released these figures in its August consumer price index report.
Transport experienced the largest annual increase among the main consumer categories, rising by 8.5% compared to August 2025. Prices for food and non-alcoholic beverages climbed 7%, while miscellaneous personal goods and services increased by 6.1%. The costs of 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%, health expenses grew 1.7%, and culture and recreation prices edged higher by 0.4% over the same period.
Prices for clothing and footwear saw a minimal increase of 0.1%, while communication and tobacco costs remained unchanged. The housing, water, electricity, gas, and other fuels category decreased by 0.6%, making it the only major group to experience a decline. The August data revealed diverse price trends within the consumer basket, with transport and food recording the steepest increases. Additionally, inflation levels varied across Oman’s governorates, with annual rates spanning from 2.1% to 4.8%.
Transport and Food Prices Drive Yearly Inflation Figures
Al Dhahirah registered the highest governorate inflation rate in August at 4.8%. Muscat followed at 3.9%, while Al Dakhiliyah posted 3.8%, and Al Wusta registered 3.4%. Both Musandam and Al Buraimi each recorded 3.3%, with South Al Sharqiyah reaching 3.1%. South Al Batinah was at 2.7%, North Al Batinah at 2.5%, and North Al Sharqiyah at 2.2%. These figures measure the annual change in consumer prices within each governorate.
Dhofar had the lowest inflation rate at 2.1%. Among food and non-alcoholic beverages, vegetables experienced the largest increase, jumping 19% from August 2025. Fruit prices grew by 16.3%, while meat prices increased 9.8%, and non-alcoholic beverages rose 3.5%. Other food categories also saw price hikes, with milk, cheese, and eggs up by 3%. The data highlight that fresh produce registered some of the most significant food price jumps.
Vegetables and Fruits Exhibit Largest Food Price Surge
Sugar, jam, honey, and sweets went up by 2.3%, while bread and cereals increased by 0.8%. Oils and fats edged higher by 0.1%, whereas fish prices declined by 0.1% from the previous year. The detailed food breakdown shows that vegetables, fruits, and meat experienced far larger increases than other grocery categories. These changes 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 extended the upward trend in Oman’s annual inflation rate, following a 3.2% increase in July. In July, food and non-alcoholic beverages rose by 7.3%, and transport prices increased by 6.5% year over year. By August, transport inflation had strengthened to 8.5%, while food inflation eased to 7%. The NCSI data indicates an average inflation of 2.9% from January to August, providing a comprehensive measure of consumer price growth during 2026.