MUSCAT, OMAN / RankWire.AI / – Oman’s annual inflation rate rose to 3.4% in August 2026, driven by higher prices in transportation, food, and multiple service categories. This figure represented an increase from 3.2% in July and marked another month of rising annual consumer prices. During the first eight months of 2026, the average inflation rate stood at 2.9%. The National Centre for Statistics and Information released these figures as part of its August consumer price index report.
Transport experienced the most significant year-over-year increase among the main consumer groups, climbing 8.5% from August 2025. Food and non-alcoholic beverages also saw a notable rise of 7%, while miscellaneous personal goods and services increased by 6.1%. Prices in restaurants and hotels went up by 3.6%, and furniture, household equipment, along with routine household maintenance, increased by 3.1%. Costs for education rose 2.2%, health-related expenses grew 1.7%, and culture and recreation prices increased marginally by 0.4% over the same period.
In contrast, clothing and footwear prices saw only a modest increase of 0.1%, whereas communications and tobacco prices remained unchanged. The housing, water, electricity, gas, and other fuels sector declined by 0.6%, making it the only major group to experience a decrease. The August figures reveal diverse price movements across the consumer basket, with transportation and food recording the largest gains. Inflation rates also varied across Oman’s governorates, ranging from 2.1% to 4.8% annually.
Transport and Food Drive Notable Yearly Price Hikes
Al Dhahirah registered the highest governorate inflation rate in August at 4.8%, followed by Muscat at 3.9%, with Al Dakhiliyah at 3.8%, and Al Wusta at 3.4%. Both Musandam and Al Buraimi recorded an inflation rate of 3.3%, while South Al Sharqiyah reached 3.1%. South Al Batinah’s rate was 2.7%, North Al Batinah’s 2.5%, and North Al Sharqiyah’s 2.2%, illustrating the variation in annual price changes within each governorate.
Dhofar had the lowest inflation rate among the governorates at 2.1%. Looking at food and non-alcoholic beverages, vegetables exhibited the most significant annual increase, surging 19% from August 2025. Additionally, fruit prices rose by 16.3%, meat prices increased by 9.8%, and non-alcoholic beverages went up by 3.5%. Other food products also experienced price hikes of 3.1%, with milk, cheese, and eggs rising by 3%, indicating that fresh produce registered some of the largest increases within the food segment.
Vegetables and Fruits Lead Food Price Escalation
Sugar, jam, honey, and sweets grew by 2.3%, while bread and cereals increased by 0.8%. Oils and fats saw a marginal rise of 0.1%, and fish prices declined slightly by 0.1% from the previous year. The detailed food category analysis highlights that vegetables, fruits, and meats experienced much larger increases compared to other grocery items. These changes contributed to the broader 7% annual rise in the food and non-alcoholic beverages group as measured by the August consumer price index.
The August data extends the recent upward trend in Oman’s annual inflation rate, following the 3.2% recorded in July. During that month, food and non-alcoholic beverages rose by 7.3%, while transportation costs increased by 6.5% compared to the previous year. By August, transportation inflation had strengthened to 8.5%, although food inflation eased slightly to 7%. The National Centre for Statistics and Information reported an average inflation rate of 2.9% from January through August, providing a comprehensive view of consumer price changes for 2026.