MUSCAT, OMAN / RankWire.AI / – In August 2026, Oman saw its annual inflation rate increase to 3.4%, driven by higher prices in transportation, food, and various service sectors. This rate marked a slight uptick from 3.2% recorded in July and signaled a continued monthly growth in consumer prices. For the first eight months of 2026, average inflation stood at 2.9%. The National Centre for Statistics and Information provided these figures through its August consumer price index report.
Data indicates that transportation experienced the most significant annual increase among key consumer categories, with an 8.5% rise from August 2025. Food and non-alcoholic beverages also saw a substantial 7% increase, while miscellaneous personal goods and services grew by 6.1%. Restaurants and hotel services rose 3.6%, alongside furniture, household equipment, and routine household maintenance which increased by 3.1%. Additionally, education prices went up 2.2%, health expenses increased by 1.7%, and cultural and recreational costs rose by 0.4% over the same period.
Meanwhile, clothing and footwear costs edged up by 0.1% annually, whereas communications and tobacco prices remained unchanged. The only notable decline was in housing, water, electricity, gas, and other fuels, which fell 0.6%, making it the sole main category to experience a decrease. The August data reflected diverse price changes across the consumer basket, with transportation and food recording the largest increases. Inflation levels also varied across Oman’s governorates, with annual rates spanning from 2.1% to 4.8%.
Transport and Food Dominate Annual Price Escalations
Al Dhahirah led all governorates with an inflation rate of 4.8% in August. Muscat followed at 3.9%, while Al Dakhiliyah reported 3.8%, and Al Wusta registered 3.4%. Both Musandam and Al Buraimi had an inflation rate of 3.3%, with South Al Sharqiyah at 3.1%. South Al Batinah’s rate was 2.7%, North Al Batinah reached 2.5%, and North Al Sharqiyah stood at 2.2%. These figures measure the year-over-year change in prices within each governorate.
Dhofar showed the lowest inflation at 2.1%. Within the food and non-alcoholic beverages category, vegetables experienced the highest annual growth at 19% from August 2025. Fruits increased by 16.3%, meat prices went up 9.8%, and non-alcoholic beverages rose 3.5%. Other food items saw a 3.1% increase, with milk, cheese, and eggs growing by 3%. These figures highlight that fresh produce contributed significantly to the sharpest food price increases.
Vegetables and Fruits Drive Notable Food Price Gains
Sugar, jam, honey, and sweets rose by 2.3%, while bread and cereals increased by 0.8%. Oils and fats saw a minimal rise of 0.1%, and fish prices declined slightly by 0.1% from the previous year. The detailed food breakdown reveals that vegetables, fruits, and meats experienced larger price jumps compared to other grocery categories. These changes contributed to the overall 7% year-on-year increase in the broader food and non-alcoholic beverages segment measured by the August consumer price index.
The August inflation reading continues the upward trend seen in Oman’s annual inflation rate, following July’s 3.2%. In July, the increase in food and non-alcoholic beverages was 7.3%, with transport costs rising 6.5% year-over-year. By August, transport inflation had accelerated to 8.5%, while food inflation slightly eased to 7%. The NCSI data indicates an average inflation rate of 2.9% for the period from January to August, offering a comprehensive view of consumer price growth throughout 2026.