Oman Records 0.7% Inflation Rise in December Amid Broader Economic Resilience

RIYADH: Oman’s inflation rate rose by 0.7 percent in December 2024 compared to the same month in 2023, according to data released by the National Center for Statistics and Information.

The increase in inflation, measured using the 2018 base year, was driven by rising prices across multiple categories. Personal goods and services saw the largest annual increase at 4.5 percent, followed by health services at 3.2 percent and food and non-alcoholic beverages at 1.7 percent.

Other sectors also experienced price increases, including restaurants and hotels (0.8 percent), culture and entertainment (0.6 percent), and clothing and footwear (0.5 percent). Furniture, household equipment, and maintenance rose by 0.4 percent, while education costs increased marginally by 0.1 percent.

Food Prices See Notable Increase

Within the food sector, several categories witnessed sharp price hikes. Vegetable prices jumped by 7.6 percent, milk, cheese, and eggs rose by 3.8 percent, and other miscellaneous food items increased by 3.7 percent.

Additional food categories also saw growth: sugar, jam, honey, and sweets rose by 2.8 percent, meat prices increased by 2.6 percent, fruits by 2.2 percent, and oils and fats by 1.6 percent.

In contrast, the transportation group experienced a 0.8 percent decline, while non-alcoholic beverages dropped by 0.5 percent. The fish and seafood group saw the most significant decrease, falling by 6.3 percent.

Prices in categories such as housing, water, electricity, gas, and other fuels, as well as communications and tobacco, remained stable. Bread and grains prices also showed no change during the month.

Economic Strength Bolsters Broader Outlook

Oman’s inflation trends align with the broader resilience observed in Gulf Cooperation Council economies, as highlighted by a December report from the International Monetary Fund (IMF). The IMF credited the region’s stability to robust non-hydrocarbon growth and ongoing structural reforms.

Oman’s fiscal discipline and strong oil prices have bolstered its economic standing, with the nation recording a 6.2 percent budget surplus and a 2.4 percent current account gain in 2024. The country’s sovereign credit rating was also upgraded to investment grade, underscoring its financial health.

Looking ahead, Oman projects a 2.7 percent GDP growth rate for 2025, while the IMF forecasts slightly higher growth at 3.1 percent. Inflation has continued to ease, averaging 0.6 percent in the first 10 months of 2024 compared to 1.0 percent in 2023, indicating a steady economic environment.

This stability, coupled with the government’s fiscal prudence, positions Oman for sustained growth and continued resilience in the face of global economic challenges.