Oman’s Inflation Rises to 2.8% in June as Food and Transport Costs Increase

Oman’s annual inflation rate rose to 2.8 percent in June compared with the same month last year, driven by higher prices for food, transport and personal goods and services, according to the latest Consumer Price Index data released by the National Center for Statistics and Information.

The figures also showed that average inflation during the first six months of 2026 stood at 2.8 percent, reflecting steady price growth as the sultanate continues to balance economic expansion with price stability following stronger hydrocarbon revenues and recent fiscal reforms.

Although inflation remains moderate by global standards, the June reading was higher than the latest official figures reported by several Gulf neighbours. Saudi Arabia recorded annual inflation of 1.8 percent in May, while Kuwait’s inflation rate stood at 2.49 percent during the same month.

According to Oman’s state news agency, prices in the culture and entertainment category increased by 0.3 percent compared with June 2025, while communications, tobacco, clothing and footwear prices remained unchanged. Housing, water, electricity, gas and other fuels recorded a 0.6 percent decline over the same period, helping offset some of the broader increases.

Food and non-alcoholic beverages registered the strongest annual rise among the main consumer categories, climbing 6.1 percent. Miscellaneous personal goods and services followed with a 5.7 percent increase, while transport costs rose 5.5 percent.

Restaurant and hotel prices increased by 4.6 percent, reflecting continued demand in the hospitality sector. Furniture, household equipment and routine home maintenance costs rose 3.1 percent, while education prices increased 2.2 percent and healthcare costs climbed 1.8 percent.

Inflation varied across the country’s governorates. A’Dhahirah recorded the highest annual inflation rate at 3.5 percent, followed by Muscat at 3.2 percent and A’Dakhiliyah at 3.1 percent. Al Wusta posted inflation of 3.0 percent, while Al Buraimi registered 2.9 percent.

Musandam and South Al Batinah each recorded inflation of 2.4 percent, followed by Dhofar at 2.2 percent. North Al Batinah and South A’Sharqiyah both reported inflation of 2.1 percent, while North A’Sharqiyah recorded the lowest rate among Oman’s governorates at 1.9 percent.

Within the food category, vegetable prices recorded the sharpest increase, rising 23.6 percent compared with June last year. Fruit prices climbed 9.9 percent, while meat prices increased 7.3 percent. Non-alcoholic beverages rose 3.6 percent, followed by milk, cheese and eggs at 2.9 percent. Sugar, jam, honey and confectionery prices gained 2.2 percent, while other food products increased 2 percent. Bread and cereals rose 0.9 percent and oils and fats edged up 0.5 percent.

Fish was the only major food category to record a decline, with prices falling 1.7 percent from a year earlier, partially easing overall food inflation.