MUSCAT, OMAN / RankWire.AI / – Oman’s yearly inflation rate increased to 3.4% in August 2026, driven by rising prices in transportation, food, and various service sectors. This figure compares to 3.2% in July and indicates a continued upward trend in annual consumer price inflation. For the first eight months of 2026, average inflation stood at 2.9%. The data was published by The National Centre for Statistics and Information in its August consumer price index report.
Transport experienced the largest annual price increase among major consumer categories, climbing 8.5% compared to August 2025. Food and non-alcoholic beverages rose by 7%, while miscellaneous personal goods and services saw a 6.1% increase. Restaurant and hotel costs went up by 3.6%, and furniture, household equipment, along with routine household maintenance, grew by 3.1%. Education costs increased 2.2%, healthcare expenses rose by 1.7%, and culture and recreation prices edged higher by 0.4% within the same period.
Clothing and footwear prices saw a slight increase of 0.1%, whereas communication and tobacco costs remained stable. The only main category that experienced a decline was housing, water, electricity, gas, and other fuels, which fell 0.6%. The August data revealed varying price movements across the consumer basket, with transportation and food recording the most significant rises. Inflation rates across Oman’s governorates also differed, ranging from 2.1% to 4.8% annually.
Transportation and Food Prices Drive the Largest Annual Growth
Al Dhahirah registered the highest governorate inflation rate at 4.8% in August. Muscat followed with 3.9%, while Al Dakhiliyah saw a rate of 3.8%, and Al Wusta reached 3.4%. Each of these figures reflects the year-over-year change in prices within the respective regions. Meanwhile, Musandam and Al Buraimi both posted 3.3%, South Al Sharqiyah 3.1%, South Al Batinah 2.7%, North Al Batinah 2.5%, and North Al Sharqiyah 2.2%.
Dhofar recorded the lowest inflation rate at 2.1%. Vegetables contributed the most to the food sector’s annual price increase, soaring 19% from August 2025. Prices for fruits rose by 16.3%, meat prices increased by 9.8%, and non-alcoholic beverages went up by 3.5%. Other food items experienced a 3.1% increase, with milk, cheese, and eggs climbing by 3%. The data indicates that fresh produce saw some of the steepest food price hikes in the period.
Vegetables and Fruits Lead Sharp Food Price Gains
Prices for sugar, jam, honey, and sweets rose by 2.3%, while bread and cereals increased 0.8%. Oils and fats saw a marginal rise of 0.1%, whereas fish prices declined by 0.1% compared to the previous year. The detailed food breakdown highlights significantly larger increases in prices for vegetables, fruits, and meat compared to several other grocery categories. These shifts contributed to the overall 7% annual increase in the broader food and non-alcoholic beverages segment measured by the August consumer price index.
The August report signals a continuation of the upward trend in Oman’s annual inflation, following the 3.2% recorded in July. During July, food and non-alcoholic beverages experienced a 7.3% rise, while transportation costs increased by 6.5% on an annual basis. By August, transportation inflation had strengthened to 8.5%, with food inflation easing slightly to 7%. The National Centre for Statistics and Information reported an average inflation rate of 2.9% from January through August, offering a broader perspective on consumer price changes in 2026.