Oman’s Inflation Rate Rises by 0.5%: What Businesses Need to Know to Navigate Rising Costs
MUSCAT: The consumer price index (CPI) in Oman experienced a 0.5% increase in August 2025 compared to the same month in 2024, referencing data from 2018.
Additionally, the average inflation rate from January to August 2025 rose by 0.8%, according to the National Centre for Statistics and Information. The data indicated that the category of miscellaneous goods and services saw the most significant increase at 6.0%, followed by transport with 2.7% and restaurants and hotels at 2.5%. Health expenditures rose by 0.8%, clothing and footwear by 0.4%, and education by 0.1%.
Conversely, prices for food and non-alcoholic beverages decreased by 1.8%, with culture and recreation dropping by 0.2%, and furniture and household equipment seeing a 0.1% decline. Meanwhile, prices for housing, water, electricity, gas, communications, and tobacco remained stable.
From January to August 2025, the average inflation rate for miscellaneous goods and services in Oman was approximately 6.2%.
In terms of food and non-alcoholic beverages in August 2025 compared to August 2024, certain subcategories reported increases: other food products rose by 3.7%, sugar, jams, honey, and confectionery saw a 3.2% increase, and oils and fats rose by 2.2%. Milk, cheese, and eggs increased by 1.1%, meat by 0.6%, and bread and cereals experienced a slight uptick of 0.3%.
In contrast, prices for vegetables fell by 14.6%, fruits by 3.1%, fish by 2.1%, and non-alcoholic beverages slightly decreased by 0.2%.
On a regional basis, Al Dhahirah Governorate recorded the highest inflation rate at 1.1% by the end of August 2025 compared to the same period last year. This was followed by Al Dakhiliyah Governorate at 1.0% and Muscat Governorate at 0.6%. Al Buraimi recorded 0.4%, Musandam 0.3%, and both Al Batinah North and South Governorates, as well as Al Sharqiyah South Governorate, each recorded 0.2%. Al Wusta and Dhofar Governorates recorded 0.1%, while Al Sharqiyah North Governorate remained unchanged. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
The recent 0.5% increase in Oman’s CPI signals a shift influencing both consumers and businesses; industries like transport and services may benefit from increased pricing power. Smart investors should assess opportunities in sectors with rising costs, particularly miscellaneous goods, while remaining cautious of declining food prices impacting purchasing power. Additionally, the stable housing and energy prices provide a buffer that could enhance consumer confidence among Oman’s households.
