Oman Inflation Rises 3.2% in July, Led by Food Prices

JEDDAH: Oman’s inflation rate rose 3.2 percent year on year in July, while average inflation stood at 2.9 percent in the first seven months of the year, according to official data. 

Data from the National Centre for Statistics and Information showed that food and non-alcoholic beverages recorded the highest annual increase among the main consumer price categories, rising 7.3 percent. 

Oman’s inflation rate was higher than the latest readings from several Gulf peers. Saudi Arabia recorded annual inflation of 1.8 percent in July, while Qatar and Kuwait posted rates of 2.21 percent and 2.19 percent, respectively, in June. 

Oman’s latest inflation reading comes as the Sultanate continues to pursue economic diversification under Oman Vision 2040, with the economy showing growth across oil and non-oil activities. Real gross domestic product expanded 2.6 percent year on year in the first quarter of 2026, while oil activities grew 4.6 percent, according to official data. 

Transport followed with a 6.5 percent increase, while miscellaneous goods and services rose 5.3 percent. Restaurants and hotels increased by 3.6 percent, and furniture, household equipment, and routine household maintenance climbed 3.1 percent. 

Education prices rose 2.2 percent year on year, while health increased 1.7 percent and recreation and culture rose 0.4 percent. 

Prices for communications, tobacco, and clothing and footwear were unchanged from July 2025. Housing, water, electricity, gas and other fuels declined by 0.6 percent. 

Al-Dhahirah leads inflation 

At the governorate level, Al-Dhahirah recorded the highest inflation rate in July at 4.4 percent, followed by Al-Dakhiliyah at 3.7 percent. Muscat and Al-Wusta each recorded inflation of 3.4 percent, while South Al-Sharqiyah and Musandam posted 3 percent each. 

Al-Buraimi recorded inflation of 2.8 percent, followed by North Al-Batinah and North Al-Sharqiyah at 2.5 percent each. South Al-Batinah recorded 2.4 percent, while Dhofar had the lowest rate at 2.1 percent, marking a 2.3-percentage-point gap between the highest and lowest governorate rates. 

Food prices drive inflation 

Within the food and non-alcoholic beverages group, vegetable prices rose 19.9 percent year on year in July, while fruit prices increased 15.8 percent. Meat prices rose 8.7 percent, fish prices increased 5.7 percent, and non-alcoholic beverages climbed 3.3 percent. 

Prices of sugar, jam, honey, and confectionery increased 2.4 percent, while milk, cheese, and eggs rose 2.2 percent. Other food products increased 2.1 percent, bread and cereals rose 1 percent, and oils and fats increased 0.5 percent. 

The NCSI report also notes that around 56,640 individual price quotations were collected from 3,907 sources across the Sultanate during the reference period. In addition, rental data were gathered from a dedicated sample of 1,150 rented housing units.