MUSCAT, OMAN / RankWire.AI / – The National Centre for Statistics and Information (NCSI) announced that Oman’s annual inflation increased to 3.4% in August 2026, driven by rising costs in transport, food, and various service sectors. This figure represents a rise from 3.2% in July and indicates another monthly escalation in the yearly consumer price index. The average inflation rate for the initial eight months of 2026 reached 2.9%, according to the same report.
Transport experienced the most significant annual increase among the key consumer groups, climbing 8.5% from August 2025. Food and non-alcoholic beverages also saw a substantial rise of 7%, while miscellaneous personal goods and services increased by 6.1%. Prices in restaurants and hotels grew by 3.6%, and furniture, household equipment, and routine household maintenance costs advanced by 3.1%. Education costs went up by 2.2%, health expenses increased 1.7%, and culture and recreation prices edged higher by 0.4% over the same period.
Clothing and footwear prices experienced a minimal increase of 0.1%, whereas communications and tobacco prices remained unchanged. The only main category to witness a decline was housing, water, electricity, gas, and other fuels, which fell 0.6%. The August data revealed diverse price trends across the consumer basket, with transport and food recording the largest gains. Variations in inflation were also observed across Oman’s governorates, with annual rates spanning from 2.1% to 4.8%.
Transport and Food Drive the Yearly Price Increases
Al Dhahirah registered the highest governorate inflation rate at 4.8% in August. Muscat followed with 3.9%, while Al Dakhiliyah posted 3.8%. Al Wusta’s rate stood at 3.4%. Both Musandam and Al Buraimi recorded 3.3%, with South Al Sharqiyah at 3.1%. South Al Batinah reached 2.7%, North Al Batinah 2.5%, and North Al Sharqiyah 2.2%. These figures reflect the annual fluctuations in prices across different regions within Oman.
Dhofar’s governorate inflation rate was the lowest at 2.1%. In terms of food and non-alcoholic beverages, vegetables showed the largest yearly increase, jumping 19% from August 2025. Fruit prices rose by 16.3%, while meat increased 9.8%, and non-alcoholic beverages grew by 3.5%. Additionally, prices for other food items increased by 3.1%, with milk, cheese, and eggs advancing by 3%. The data highlights that fresh produce experienced some of the most significant food price hikes.
Vegetables and Fruits Experience Largest Food Price Spikes
Sugar, jam, honey, and sweets rose by 2.3%, while bread and cereals saw a 0.8% increase. Oils and fats edged up by 0.1%, whereas fish prices declined by 0.1% compared to the previous year. The detailed food segment shows that vegetables, fruits, and meat recorded notably larger price increases than several other grocery categories. These changes contributed to the broader 7% annual rise in food and non-alcoholic beverages within the August consumer price index.
The August inflation rate continues the upward trend seen earlier in 2026, following the 3.2% reported in July. In July, food and non-alcoholic beverages increased by 7.3%, and transport costs rose by 6.5%. By August, transport inflation accelerated to 8.5%, while food inflation slightly eased to 7%. The NCSI data indicates an average inflation rate of 2.9% from January through August, providing a comprehensive view of consumer price changes during the first eight months of 2026.