MUSCAT, OMAN / RankWire.AI / – Oman’s year-on-year inflation rate increased to 3.4% in August 2026, driven by rising costs in transport, food, and various service sectors. The figure marks an uptick from 3.2% in July and signals another month of rising consumer prices. The average inflation rate for the initial eight months of 2026 was 2.9%. The National Centre for Statistics and Information announced these statistics in its August consumer price index report.
Transport experienced the most significant annual increase among primary consumer categories, jumping 8.5% from August 2025. Food and non-alcoholic beverages rose by 7%, while miscellaneous personal goods and services saw a 6.1% rise. Prices in restaurants and hotels grew by 3.6%, and furniture, household equipment, and routine maintenance costs increased by 3.1%. Education expenses went up 2.2%, health costs increased 1.7%, and culture and recreation prices edged higher by 0.4% over the same period.
Clothing and footwear costs saw a slight increase of 0.1%, whereas communications and tobacco prices remained steady. Housing, water, electricity, gas, and other fuels experienced a decline of 0.6%, making it the only major group to see a decrease. The August data revealed varied price movements within the consumer basket, with transportation and food showing the largest gains. Inflation rates also differed across Oman’s governorates, ranging from 2.1% to 4.8% annually.
Transport and Food Lead the Yearly Price Growth
Al Dhahirah registered the highest inflation rate at 4.8% in August, followed by Muscat at 3.9%, and Al Dakhiliyah at 3.8%. Al Wusta’s rate was 3.4%, while Musandam and Al Buraimi each reached 3.3%. South Al Sharqiyah stood at 3.1%, South Al Batinah at 2.7%, North Al Batinah at 2.5%, and North Al Sharqiyah at 2.2%. These figures reflect the annual changes in consumer prices within each governorate.
Dhofar experienced the lowest inflation rate at 2.1%. Among food and non-alcoholic beverages, vegetables saw the largest increase, rising 19% from August 2025. Fruit prices grew by 16.3%, while meat costs increased 9.8%, and non-alcoholic beverages climbed 3.5%. Other food items saw a 3.1% rise, with milk, cheese, and eggs up by 3%. Fresh produce, particularly vegetables and fruit, contributed notably to the food price increases.
Vegetables and Fruits Exhibit Largest Food Price Spikes
Sugar, jam, honey, and sweets rose 2.3%, whereas bread and cereals gained 0.8%. Oils and fats increased slightly by 0.1%, while fish prices declined marginally by 0.1% from the previous year. The food category’s overall inflation was driven primarily by sharp increases in vegetables, fruit, and meat, contributing to the 7% annual rise in the broader food and non-alcoholic beverages segment measured by the August consumer price index.
The August data continues the upward trend in Oman’s annual inflation, following a 3.2% rate in July. In July, food and non-alcoholic beverages increased by 7.3%, and transport costs rose 6.5% year-on-year. By August, transport inflation had accelerated to 8.5%, while food inflation slightly eased to 7%. The NCSI reported an average inflation of 2.9% from January to August, reflecting broader consumer price changes during 2026.