MUSCAT, OMAN / RankWire.AI / – Oman’s yearly inflation rate increased to 3.4% in August 2026, driven by higher prices in transport, food, and various service sectors. This rate surpassed the 3.2% recorded in July, reflecting a continued monthly rise in annual consumer prices. The average inflation rate for the first eight months of 2026 was 2.9%. The National Centre for Statistics and Information published these figures in its consumer price index report for August.
Transport experienced the most significant annual increase among the main consumer categories, rising by 8.5% compared to August 2025. Prices for food and non-alcoholic beverages grew by 7%, while miscellaneous personal goods and services increased by 6.1%. Restaurants and hotels saw a 3.6% rise, and furniture, household equipment, along with routine household maintenance, increased by 3.1%. Education costs rose by 2.2%, healthcare expenses went up by 1.7%, and prices for culture and recreation edged higher by 0.4% over the same period.
Clothing and footwear prices saw a slight increase of 0.1%, whereas communication and tobacco prices remained unchanged. The only main category to decline was housing, water, electricity, gas, and other fuels, which fell by 0.6%. The August data revealed varied price movements across the consumer basket, with transport and food recording the largest increases. Inflation rates also varied across Oman’s governorates, ranging from 2.1% to 4.8% annually.
Transport and Food Prices Drive Yearly Inflation
In August, Al Dhahirah experienced the highest governorate inflation rate at 4.8%. Muscat followed with 3.9%, while Al Dakhiliyah recorded 3.8% and Al Wusta 3.4%. Both Musandam and Al Buraimi each reached 3.3%, with South Al Sharqiyah at 3.1%. South Al Batinah registered a 2.7% increase, North Al Batinah 2.5%, and North Al Sharqiyah 2.2%. These figures measure the annual change in prices within each governorate.
Dhofar registered the lowest rate at 2.1%. The most notable food-related price jump was in vegetables, which increased by 19% from August 2025. Fruit prices climbed 16.3%, while meat costs rose 9.8%. Non-alcoholic beverages increased by 3.5%, and other food products went up by 3.1%. Milk, cheese, and eggs experienced a 3% rise. These figures highlight that fresh produce contributed significantly to the notable food price increases.
Vegetables and Fruits Lead Food Price Surge
Prices for sugar, jam, honey, and sweets increased by 2.3%, while bread and cereals went up by 0.8%. Oils and fats showed a marginal rise of 0.1%, and fish prices declined by 0.1% compared to the previous year. The detailed food breakdown indicated that vegetables, fruits, and meat experienced much larger price hikes than several other grocery categories. These changes contributed to the overall 7% annual increase in the broader food and non-alcoholic beverages sector as reflected in the August consumer price index.
The August inflation figures mark an upward shift from the 3.2% rate recorded in July. In July, prices for food and non-alcoholic beverages had risen by 7.3%, and transport costs had increased by 6.5% year-on-year. By August, transport inflation had accelerated to 8.5%, while food inflation eased slightly to 7%. The NCSI data indicated an overall inflation rate of 2.9% from January to August, offering a comprehensive view of consumer price trends for 2026.