MUSCAT, OMAN / RankWire.AI / – In August 2026, Oman experienced a rise in its annual inflation rate to 3.4%, driven by higher prices in transport, food, and several service sectors. This figure reflects an increase from 3.2% recorded in July and signifies another month of accelerating consumer price inflation. The National Centre for Statistics and Information documented these findings in its consumer price index for August, noting that inflation for the first eight months of 2026 averaged 2.9%.
Among the main categories, transport experienced the steepest annual increase, rising by 8.5% from August 2025. The cost of food and non-alcoholic beverages climbed 7%, while miscellaneous personal goods and services grew by 6.1%. Prices at restaurants and hotels rose 3.6%, with furniture, household equipment, and routine household maintenance increasing 3.1%. Education costs went up 2.2%, health expenses rose 1.7%, and prices for culture and recreation saw a modest 0.4% increase over the same period.
Clothing and footwear prices edged up by 0.1% over the year, whereas communication and tobacco costs remained steady. Conversely, the housing, water, electricity, gas, and other fuels category declined by 0.6%, marking it as the only major group to see a decrease. The August data revealed diverse price movements within the consumer basket, with transport and food registering the highest increases. Inflation rates also varied across Oman’s governorates, ranging from 2.1% to 4.8% annually.
Transport and Food Prices Dominate Annual Inflation
Al Dhahirah experienced the highest inflation rate among governorates at 4.8% in August. Muscat followed at 3.9%, with Al Dakhiliyah at 3.8% and Al Wusta at 3.4%. Both Musandam and Al Buraimi recorded 3.3%, while South Al Sharqiyah reached 3.1%. South Al Batinah showed an inflation rate of 2.7%, North Al Batinah at 2.5%, and North Al Sharqiyah at 2.2%. These figures illustrate the annual price changes observed within each governorate.
Dhofar posted the lowest inflation rate at 2.1%. In terms of food and non-alcoholic beverages, vegetables saw the largest annual increase, jumping 19% from August 2025. Fruit prices rose 16.3%, meat increased 9.8%, and non-alcoholic beverages went up 3.5%. Other food categories also experienced increases: milk, cheese, and eggs advanced 3%, while overall food prices grew by 7%, reflecting significant gains particularly in fresh produce.
Vegetables and Fruits Register the Sharpest Food Price Hikes
Sugar, jam, honey, and sweets rose 2.3%, while bread and cereals increased by 0.8%. Oils and fats saw a marginal rise of 0.1%, whereas fish prices declined slightly by 0.1% compared to the previous year. The detailed food breakdown highlights that vegetables, fruits, and meat experienced much larger price jumps than other grocery items. These increases contributed to the overall 7% annual rise in the broader food and non-alcoholic beverages segment measured by the August consumer price index.
The August inflation figures confirm the upward trend seen in Oman’s annual inflation, following the 3.2% noted in July. Food and non-alcoholic beverages had increased by 7.3% in July, and transport costs by 6.5%. By August, transport inflation had accelerated to 8.5%, while food inflation softened slightly to 7%. The NCSI data indicates an average inflation rate of 2.9% from January through August, offering a broader perspective on consumer price changes throughout 2026.