RIYADH: A rise in the prices of several categories of consumer products pushed Oman’s annual inflation rate up by 0.7 percent in December compared to base year 2018, according to new data.
The rise in inflation was driven by increases in several key categories, including miscellaneous goods and services, which surged by 4.5 percent, health services by 3.2 percent, and food and non-alcoholic beverages by 1.7 percent, according to the National Center for Statistics and Information reported.
Food and non-alcoholic beverages saw a 1.7 percent price hike, while the restaurant and hotel group rose by 0.8 percent. Other sectors, including culture and entertainment, clothing and footwear, and furniture and household maintenance, also experienced minor price increases.
Despite this, Oman’s inflation remains among the lowest in the region, as the government has implemented measures to contain price rises. This effort has been supported by prudent fiscal policies, high oil prices, and growth in non-hydrocarbon exports.
These factors helped the country achieve a 6.2 percent budget surplus and a 2.4 percent current account gain in 2024.
The latest CPI data also highlighted specific price hikes in food categories. Vegetables saw a significant 7.6 percent increase, followed by milk, cheese, and eggs at 3.8 percent.
Other food products not categorized elsewhere rose by 3.7 percent, while sugar, jam, honey, and sweets increased by 2.8 percent. Meat prices were up 2.6 percent, fruits rose by 2.2 percent, and oils and fats climbed by 1.6 percent.
On the downside, transportation costs fell by 0.8 percent, non-alcoholic beverages dropped by 0.5 percent, and fish and seafood prices plunged by 6.3 percent. Prices in the housing, water, electricity, gas, and other fuels sectors remained stable, as did communications and tobacco prices.
For 2025, Oman projects a modest 2.7 percent growth in gross domestic product, while IMF projections released earlier this month point to a more optimistic 3.1 percent expansion. The inflation rate has been easing in recent months, declining to 0.6 percent during the first 10 months of 2024, down from 1.0 percent in 2023.
