MUSCAT, OMAN / RankWire.AI / – In August 2026, Oman saw its annual inflation rate climb to 3.4%, driven by higher prices in transport, food, and several service sectors. This rate increased from 3.2% in July, signifying another month of rising consumer prices. The average inflation rate for the first eight months of 2026 reached 2.9%. The National Centre for Statistics and Information published these figures in its August consumer price index report.
Transport experienced the most significant annual increase among the main consumer groups, with an 8.5% rise from August 2025. Food and non-alcoholic beverages grew by 7%, while miscellaneous personal goods and services increased 6.1%. The prices at restaurants and hotels went up 3.6%, and furniture, household equipment, and routine maintenance costs rose 3.1%. Education costs increased 2.2%, healthcare expenses edged up 1.7%, and culture and recreation prices saw a slight 0.4% increase during this period.
Clothing and footwear prices went up by 0.1%, whereas communications and tobacco costs remained steady. Housing, water, electricity, gas, and other fuels decreased by 0.6%, marking the only major category to decline. The August data revealed varying price trends within the consumer basket, with transport and food recording the largest increases. Inflation rates across Oman’s governorates ranged from 2.1% to 4.8%.
Transport and Food Drive the Biggest Annual Price Gains
Al Dhahirah registered the highest governorate inflation rate 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 stood at 2.7%, North Al Batinah at 2.5%, and North Al Sharqiyah at 2.2%. These figures measure the year-over-year price changes in each governorate.
Dhofar experienced the lowest inflation rate at 2.1%. Within the food and non-alcoholic beverages category, vegetables saw the largest annual increase, jumping 19% from August 2025. Fruit prices rose 16.3%, while meat increased 9.8%, and non-alcoholic beverages went up 3.5%. Other food products also saw price rises, with milk, cheese, and eggs climbing 3%. These figures highlight that fresh produce registered some of the sharpest food price increases.
Vegetables and Fruits Lead Notable Food Price Gains
Sugar, jam, honey, and sweets increased by 2.3%, while bread and cereals saw a 0.8% rise. Oils and fats edged up by 0.1%, whereas fish prices declined slightly by 0.1% from the previous year. The detailed food breakdown indicates that vegetables, fruits, and meats experienced much larger price hikes compared to other grocery items. These changes contributed to the broader 7% annual increase in food and non-alcoholic beverages, as reflected in the August consumer price index.
The August inflation figures further extended Oman’s recent upward trend, following the 3.2% rate recorded in July. During July, food and non-alcoholic beverages had increased by 7.3%, and transport prices by 6.5% year-over-year. By August, transport inflation had accelerated to 8.5%, while food inflation slightly eased to 7%. The NCSI data indicated an average inflation rate of 2.9% for January through August, offering a comprehensive view of consumer price growth throughout 2026.