MUSCAT, OMAN / RankWire.AI / – In the broader context of rising consumer expenses, Oman’s annual inflation rate hit 3.4% in August 2026, marking an ongoing upward trend in price levels. The rate was previously 3.2% in July and 2.8% in June. For the period from January through August, average inflation stood at 2.9%. The National Centre for Statistics and Information presented these latest figures through its August consumer price index report. Notably, transportation and food expenses experienced the most significant increases among the main expenditure categories.
Transport prices climbed by 8.5% compared to August 2025, representing the largest yearly rise among key consumer groups. Food and non-alcoholic beverages followed, with a 7% increase. Other categories such as miscellaneous personal goods and services saw a 6.1% rise, while restaurant and hotel costs increased by 3.6%. The prices for furniture, household equipment, and routine maintenance grew by 3.1%, with education costs rising 2.2% and health expenses up 1.7%. Meanwhile, prices in the culture and recreation sector increased by only 0.4%.
Some other segments experienced more modest changes. Clothing and footwear saw a slight 0.1% increase, while communication and tobacco prices remained stable compared to the previous year. Conversely, housing, water, electricity, gas, and other fuels decreased by 0.6%. The August data also revealed significant variations across Oman’s governorates. According to the official consumer price figures, inflation ranged from 2.1% in Dhofar to 4.8% in Al Dhahirah.
Transport and Food Costs Lead August Price Hikes
Al Dhahirah experienced the highest annual inflation rate among the governorates at 4.8%. Muscat followed with 3.9%, while Al Dakhiliyah registered 3.8%. Al Wusta reported 3.4%, and both Musandam and Al Buraimi each saw 3.3%. South Al Sharqiyah posted a rate of 3.1%. Other regions such as South Al Batinah and North Al Batinah recorded 2.7% and 2.5%, respectively, while North Al Sharqiyah registered 2.2%. Dhofar had the lowest inflation at 2.1%.
Within food prices, some of the most notable annual increases were observed in vegetables, which rose by 19%, and fruit, which grew by 16.3%. Meat prices increased by 9.8%, and non-alcoholic beverages saw a 3.5% rise. Other food items experienced a 3.1% increase, with milk, cheese, and eggs up 3%. Sugar, jam, honey, and sweets advanced by 2.3%. Bread and cereals saw a smaller rise of 0.8%, illustrating the diverse shifts within the food sector.
Steepest Gains Found in Fresh Produce
Prices for oils and fats increased marginally by 0.1% since August 2025, while fish prices fell by 0.1%. Overall, the food and non-alcoholic beverages group experienced a 7% increase over the year, ranking second after transport in terms of main consumer expenses. The data from the National Centre for Statistics and Information highlighted that vegetables, fruit, and meat contributed most significantly to the price hikes within food. Several other grocery categories experienced smaller increases, with fish being the only segment to decline in price.
Oman’s recent inflation trajectory continued upward during the past few months. The annual rate went from 2.8% in June to 3.2% in July and reached 3.4% in August. In July, food and non-alcoholic beverages increased by 7.3%, and transport costs rose by 6.5%. By August, transport inflation surged to 8.5%, while food inflation slowed slightly to 7%. For the first eight months of 2026, the average inflation rate was maintained at 2.9%.