MUSCAT, OMAN / RankWire.AI / – In August 2026, Oman’s annual inflation rate climbed to 3.4%, continuing a recent upward trend in consumer prices. The rate was 3.2% in July and 2.8% in June. The average inflation rate from January to August reached 2.9%. The National Centre for Statistics and Information provided these latest figures in its consumer price index report for August. Notably, transportation and food sectors saw the most significant increases among the primary expense categories.
Transport costs grew by 8.5% compared to August 2025, marking the highest yearly increase among key consumer groups. Food and non-alcoholic beverages followed with a 7% rise. Additionally, miscellaneous personal goods and services increased by 6.1%, while restaurants and hotels experienced a 3.6% growth. Furniture, household equipment, and routine household maintenance costs rose 3.1%. Education expenses increased by 2.2%, with health costs up 1.7%. Culture and recreation prices saw a modest increase of 0.4%.
Other categories experienced more limited price shifts. Clothing and footwear saw a minimal 0.1% rise, and communication and tobacco prices remained steady compared to the previous year. Housing, water, electricity, gas, and other fuels declined by 0.6%. The August figures also revealed noticeable variation across Oman’s governorates. The annual inflation rate ranged from 2.1% in Dhofar to 4.8% in Al Dhahirah, according to the official consumer price data.
Transport and Food Lead the August Price Increases
Among the governorates, Al Dhahirah recorded the highest annual inflation rate at 4.8%. Muscat followed at 3.9%, with Al Dakhiliyah at 3.8%. Al Wusta experienced a 3.4% increase, while Musandam and Al Buraimi each posted 3.3%. South Al Sharqiyah registered 3.1%. South Al Batinah’s inflation was 2.7%, North Al Batinah was at 2.5%, and North Al Sharqiyah at 2.2%. Dhofar had the lowest rate at 2.1%.
Food prices saw some of the most notable annual jumps in August. Vegetables surged by 19%, fruit prices increased by 16.3%, and meat costs rose 9.8%. Non-alcoholic beverages gained 3.5%, while other food items increased 3.1%. Milk, cheese, and eggs went up by 3%, and sugar, jam, honey, and sweets rose 2.3%. Bread and cereals experienced a modest 0.8% increase, illustrating the wide variation in food price movements.
Fresh Produce Prices Show Largest Gains
Prices for oils and fats increased by 0.1% from August 2025, while fish prices declined by 0.1%. Overall, food and non-alcoholic beverages rose 7% annually, ranking behind transport as the leading category. The data from the National Centre for Statistics and Information indicated that vegetables, fruit, and meat contributed most to the overall food price increases. Several other grocery segments experienced smaller gains, with fish being the only listed food category to see a decline.
The August figures continue the recent trend of rising headline inflation in Oman. From 2.8% in June, inflation increased to 3.2% in July and reached 3.4% in August. In July, food and non-alcoholic beverages grew by 7.3%, while transport costs increased by 6.5%. By August, transport inflation accelerated further to 8.5%, though food inflation eased slightly to 7%. The average inflation rate for the first eight months of 2026 remained steady at 2.9%.