Rising Inflation in Oman: Key Implications for Investors and Businesses
MUSCAT: In October 2025, Oman’s general consumer price index experienced a year-on-year increase of 1.5 percent, according to official data reflecting prices based on 2018 standards. The average inflation rate for the first ten months of 2025 also rose by 0.9 percent, indicating modest and widespread price pressures throughout the economy.
Data from the National Centre for Statistics and Information revealed that the category of miscellaneous personal goods and services saw the most significant increase, with an average inflation rate of 6.6 percent during this period. This segment also led the monthly increases, surging by 8.8 percent in October compared to the same month in 2024. Other sectors also saw price hikes: transport prices increased by 3.9 percent, followed by restaurants and hotels at 2.6 percent, furniture and household equipment at 2.5 percent, and education services, which rose by 2.2 percent.
Food and non-alcoholic beverage prices marginally increased by 0.4 percent. Clothing and footwear as well as health costs saw a slight rise of 0.1 percent each. Conversely, prices in the culture and entertainment sector decreased by 0.3 percent, while housing, water, electricity, gas, and other fuels, along with communication and tobacco prices, remained stable.
Within the food and non-alcoholic beverage category, notable price increases were observed in several sub-groups. Fish prices climbed by 5.6 percent, followed by sugar, jam, honey, and sweets at 3.7 percent, and other unspecified food products at 3 percent. Prices for milk, cheese, and eggs rose by 0.9 percent, while oils and fats and bread and cereals each saw a 0.5 percent increase. In contrast, vegetable prices dropped by 3.7 percent, and fruit prices fell by 0.4 percent. Meat and non-alcoholic beverages experienced slight declines of 0.1 percent.
At the governorate level, Al Dhahirah Governorate reported the highest year-on-year inflation rate of 2.9 percent as of the end of October 2025, followed by Al Dakhiliyah at 2.1 percent and Al Buraimi at 2 percent. Inflation was recorded at 1.5 percent in Musandam and Muscat, 1.3 percent in Al Batinah South, and 1 percent in Dhofar. Both Al Batinah North and Al Sharqiyah South recorded inflation rates of 0.9 percent, while Al Wusta had the lowest rate at 0.8 percent.
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The 1.5% rise in Oman’s consumer price index signals modest inflationary pressures that could challenge purchasing power. Businesses may need to adjust pricing strategies to account for increases in transport, food, and personal services, creating opportunities for sectors that can innovate in cost management. Smart investors and entrepreneurs should consider diversifying portfolios and exploring growth areas like transport and hospitality, as they may experience robust demand despite overall price hikes.
