Inflation climbs to 1.7% on higher transport costs

25/12/2025 04:28 AST

Oman's annual inflation rate rose to 1.7% in November, driven mainly by higher transport costs, according to consumer price data released by the National Centre for Statistics and Information (NCSI) on Wednesday.

The sultanate's Consumer Price Index (CPI) showed annual inflation accelerating to 1.67% in November, up from 1.5% in October, marking the highest level since February 2023.

The increase in inflation was largely attributed to a sharp price increase in the transport category, which carries nearly 15% weightage in Oman's CPI basket. Transport prices jumped 4.4% year-on-year in November.

Prices in the miscellaneous goods and services category recorded a strong increase of 9%, while the restaurants and hotels group saw prices climb 2.7%, adding further upward pressure to the overall inflation rate.

In contrast, prices in the food and non-alcoholic beverages category - which accounts for nearly 21% of the consumer basket - rose by a modest 0.9% year-on-year in November. Within this group, vegetable prices fell sharply by 8.2%, while fruit prices increased 2.1%. Prices of fish and seafood surged 9.65% compared to the same month a year earlier. Moderate increases were recorded in bread and cereals (1.36%), oils and fats (0.8%), milk, cheese and eggs (0.9%) and meat (0.9%).

Other major expenditure groups showed limited price movements. The recreation and culture segment recorded a marginal decline of 0.1%, while furnishings, household equipment and routine maintenance rose 2.4%. Prices for housing, water, electricity, gas and other fuels remained stable compared to November 2024.

On a month-on-month basis, Oman's consumer prices were unchanged in November.

Despite the latest uptick, overall inflation in Oman remains modest by global standards. Annual inflation averaged 0.9% during the first 11 months of 2025, reflecting subdued consumer demand, stable food prices and the government's continued control over key utility and fuel prices.

Inflationary pressures across the GCC have generally remained contained this year, supported by government subsidies, controlled import costs and currency stability amid global trade and geopolitical tensions.

The International Monetary Fund expects Oman's average inflation to remain low at around 0.9% in 2025, supported by price caps on essential goods and the strength of the US dollar, to which the Omani rial is pegged.

Muscat Daily