Oman's consumer prices rose 3.8 percent year on year in May, with transport and miscellaneous personal goods and services recording the sharpest increases, official data showed. According to the National Center for Statistics and Information, the average inflation rate for the January-May period stood at 2.8 percent, the Oman News Agency (ONA) reported.
Regional Comparison and Key Drivers
Oman's inflation rate exceeded the latest reported readings across much of the Gulf Cooperation Council. Saudi Arabia's CPI rose 1.8 percent year on year in May, while Kuwait's inflation stood at 2.49 percent in the same month. Oxford Economics forecasts Bahrain's full-year 2026 inflation at 2.1 percent, while inflation in the UAE is expected to remain close to the 2 percent mark.
“The miscellaneous personal goods and services group topped the list of categories with the highest price increases, at 9.6 percent, followed by transport at 9.2 percent, and food and non-alcoholic beverages at 6.6 percent,” the ONA report stated.
Category-Wise Price Changes
Restaurants and hotels recorded a 4.7 percent increase, while household furnishings and maintenance rose 3.1 percent and education advanced 2.2 percent. Health prices increased 1.8 percent, while culture and entertainment edged up 0.3 percent. Clothing and footwear, communications, and tobacco recorded no meaningful change, while housing, water, electricity, gas and fuel costs dipped slightly by 0.3 percent.
Within the food basket, vegetables surged 24.9 percent year on year and fruits climbed 16.7 percent. Meat prices rose 5.1 percent, non-alcoholic beverages 3.6 percent, and dairy, cheese and eggs 2.6 percent. Sugar, jam, honey and sweets were up 2.5 percent, bread and cereals 1 percent, and fish and seafood a modest 0.3 percent. Oils and fats edged up 0.8 percent.
Governorate-Level Inflation Variations
Inflation varied significantly across the sultanate’s governorates. Al Dhahirah recorded the highest rate at 4.8 percent, followed by Al Dakhiliyah at 4.4 percent and Muscat at 4.2 percent. Al Buraymi came in at 3.9 percent and Al Wusta at 3.5 percent. South Al Batinah and Musandam both recorded 3.4 percent, while North and South Al Sharqiyah stood at 3.2 percent. North Al Batinah and Dhofar reported the lowest rates among the governorates, each at 2.3 percent.
Supply Chain Disruptions
The rise comes as economies in the region grapple with supply chain disruptions stemming from reduced transit through the Strait of Hormuz.
