MUSCAT, OMAN / RankWire.AI / – In August 2026, Oman’s yearly inflation increased to 3.4%, driven by higher costs in transport, food, and various service sectors. This marks a rise from 3.2% in July and represents another month of growing annual consumer prices. The first eight months of 2026 saw an average inflation rate of 2.9%. The National Centre for Statistics and Information published these figures in its consumer price index report for August.
Transport experienced the highest yearly increase among major consumer price groups, climbing 8.5% compared to August 2025. Prices for food and non-alcoholic beverages rose 7%, while miscellaneous personal goods and services went up by 6.1%. Restaurants and hotels saw a 3.6% increase, and furniture, household equipment, and routine maintenance costs grew by 3.1%. Education expenses increased 2.2%, healthcare costs rose 1.7%, and culture and recreation prices grew by 0.4% over the same period.
Prices for clothing and footwear edged up by 0.1% over the year, while communications and tobacco remained unchanged. Conversely, housing, water, electricity, gas, and other fuels declined by 0.6%, making it the only main category to experience a decrease. The August data revealed varied price trends within 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 Costs Drive Annual Price Growth
Al Dhahirah registered the highest inflation rate among governorates at 4.8% in August. Muscat followed with 3.9%, while Al Dakhiliyah and Al Wusta recorded 3.8% and 3.4% respectively. Both Musandam and Al Buraimi saw increases of 3.3%, with South Al Sharqiyah at 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 illustrate the year-on-year price changes within each governorate.
Dhofar experienced the lowest inflation rate at 2.1%. Notably, vegetables within the food and non-alcoholic beverages category saw the largest annual increase, rising by 19% from August 2025. Fruit prices increased by 16.3%, while meat costs grew 9.8%, and non-alcoholic beverages rose 3.5%. Other food items increased by 3.1%, with milk, cheese, and eggs up 3%. These figures highlight that fresh produce contributed significantly to the food price surges.
Vegetables and Fruits Lead Sharp Food Price Gains
Sugar, jam, honey, and sweets increased by 2.3%, while bread and cereals went up by 0.8%. Oils and fats rose slightly by 0.1%, and fish prices declined by 0.1% compared to the previous year. The detailed food index reveals that vegetables, fruits, and meat experienced notably larger price increases than other grocery categories. These shifts contributed to the 7% rise in the overall food and non-alcoholic beverages group measured by the August consumer price index.
The August inflation data indicates a continuation of Oman’s recent upward trend after July’s 3.2%. In July, food and non-alcoholic beverages increased by 7.3%, and transport prices rose 6.5%. By August, transport inflation had accelerated to 8.5%, whereas food inflation slightly eased to 7%. The NCSI data shows an average inflation rate of 2.9% from January to August, providing a broader view of consumer price inflation during 2026.