MUSCAT, OMAN / RankWire.AI / – Oman’s year-on-year inflation increased to 3.4% in August 2026, driven by higher prices in transportation, food, and various service categories. The figure represents a slight rise from 3.2% recorded in July and indicates another monthly uptick in annual consumer price growth. The first eight months of 2026 saw an average inflation rate of 2.9%. The National Centre for Statistics and Information released these statistics as part of its August consumer price index report.
Transport experienced the most significant yearly increase among major consumer price groups, climbing 8.5% from August 2025. Food and non-alcoholic beverages saw a 7% rise, while miscellaneous personal goods and services increased by 6.1%. Additionally, restaurants and hotels prices went up by 3.6%, and furniture, household equipment, and routine household maintenance grew by 3.1%. Education costs rose 2.2%, health expenses increased by 1.7%, and prices for culture and recreation moved up by 0.4% over the same period.
In contrast, clothing and footwear prices saw a marginal increase of 0.1% year-over-year, while communications and tobacco prices remained stable. The only 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 the most notable increases in transport and food. Inflation rates also differed across Oman’s governorates, ranging from 2.1% to 4.8% annually.
Transport and Food Drive Yearly Price Escalation
Al Dhahirah registered the highest governorate inflation rate in August at 4.8%. Muscat followed with 3.9%, while Al Dakhiliyah recorded 3.8%, and Al Wusta reached 3.4%. Both Musandam and Al Buraimi each had an inflation rate of 3.3%, with South Al Sharqiyah at 3.1%. South Al Batinah experienced 2.7%, North Al Batinah was at 2.5%, and North Al Sharqiyah at 2.2%. These figures reflect the annual inflation change within each governorate.
Dhofar exhibited the lowest inflation rate among the governorates at 2.1%. Within the food and non-alcoholic beverages sector, vegetables recorded the largest increase, jumping 19% from August 2025. Fruit prices rose by 16.3%, while meat prices grew by 9.8%, and non-alcoholic beverages increased by 3.5%. Other food categories also saw price hikes, with milk, cheese, and eggs rising 3%. The data indicates that fresh produce experienced some of the most significant food price increases.
Vegetables and Fruits Lead in Food Price Gains
Sugar, jam, honey, and sweets increased by 2.3%, while bread and cereals saw a rise of 0.8%. Oils and fats moved up by 0.1%, whereas fish prices dipped by 0.1% compared to the previous year. The food sector’s detailed breakdown highlighted that vegetables, fruits, and meats experienced much larger price hikes than other grocery items. These changes contributed to the broader 7% annual increase in food and non-alcoholic beverages as measured by the August consumer price index.
The August inflation figure continues the upward trend seen in Oman, following the 3.2% rate reported in July. In July, food and non-alcoholic beverages had increased by 7.3%, and transport prices by 6.5% compared to the previous year. By August, transport inflation had intensified to 8.5%, while food inflation slightly eased to 7%. The NCSI data indicated an average inflation rate of 2.9% from January through August, offering a comprehensive view of consumer price growth during 2026.