MUSCAT, OMAN / RankWire.AI / – In August 2026, Oman’s inflation rate climbed to 3.4%, marking a continued increase in consumer prices. Previously, inflation was 3.2% in July and 2.8% in June. The average inflation rate for the period from January to August reached 2.9%. The National Centre for Statistics and Information released these latest figures within its consumer price index for August, highlighting significant price increases in transportation and food sectors.
Transport costs saw an 8.5% rise compared to August 2025, representing the highest annual growth among major consumer categories. Food and non-alcoholic beverages experienced a 7% increase. Meanwhile, miscellaneous personal goods and services went up by 6.1%, and expenses for restaurants and hotels rose by 3.6%. Prices for furniture, household equipment, and routine household maintenance increased by 3.1%. Education costs grew by 2.2%, and health expenses went up by 1.7%. Culture and recreation prices recorded a modest increase of 0.4%.
Several other categories experienced more modest price changes. Clothing and footwear saw an increase of just 0.1%, while communication and tobacco prices remained stable compared to the previous year. Housing, water, electricity, gas, and other fuels declined by 0.6%. Additionally, the August data revealed notable variations across Oman’s governorates. Annual inflation ranged from 2.1% in Dhofar to 4.8% in Al Dhahirah, according to the official consumer price data.
Transport and Food Costs Propel August Price Increase
The governorate of Al Dhahirah experienced the highest yearly inflation rate at 4.8%. Muscat followed with 3.9%, while Al Dakhiliyah recorded 3.8%. Al Wusta registered a 3.4% increase, and both Musandam and Al Buraimi each saw a rise of 3.3%. South Al Sharqiyah recorded 3.1%, with South Al Batinah at 2.7%, North Al Batinah at 2.5%, and North Al Sharqiyah at 2.2%. Dhofar noted the lowest inflation rate at 2.1%.
Within the food category, some of the most substantial annual price hikes were seen in vegetables, which increased by 19%, and fruit, up by 16.3%. Meat prices grew by 9.8%, and non-alcoholic beverages rose by 3.5%. Other food items saw a 3.1% rise, with milk, cheese, and eggs increasing by 3%. Sugar, jam, honey, and sweets advanced by 2.3%. Bread and cereals experienced a modest increase of 0.8%, illustrating the varying price movements within the food sector.
Prices for Fresh Produce Record the Sharpest Growth
Prices for oils and fats went up by 0.1% from August 2025, while fish prices declined by 0.1%. Overall, the food and non-alcoholic beverages segment still posted a 7% increase over the year. This growth ranked second after transport among the primary consumer groups. Data from the National Centre for Statistics and Information indicated that vegetables, fruits, and meat contributed most significantly to food-related gains. Several other grocery categories experienced smaller increases, with fish being the only segment to decline.
The August figures continue the upward trend in Oman’s headline inflation rate observed over recent months. The inflation rate rose from 2.8% in June to 3.2% in July and reached 3.4% in August. During July, food and non-alcoholic beverages increased by 7.3%, while transport costs grew by 6.5%. By August, transport inflation had risen further to 8.5%, whereas food inflation slightly eased to 7%. The average inflation rate for the first eight months of 2026 remained steady at 2.9%.