Oman inflation inches up by 0.56% in March

05/05/2025 01:55 AST

Oman's inflation rate inched up by 0.56 percent in March, reflecting overall price stability despite notable movements in select consumer categories, official data showed.

According to data from the National Centre for Statistics and Information, the biggest year-on-year gain was recorded in the miscellaneous goods and services segment, which rose 6.11 percent, followed by health, up 3.22 percent, and transport, which advanced 1.74 percent.

In contrast, prices for vegetables and fish and seafood fell sharply, declining 10.23 percent and 6.95 percent, respectively.

Oman's inflation remains one of the lowest in the region, thanks to government measures, prudent fiscal policies, high oil prices, and rising non-oil exports, with the rate easing in recent months.

Across the region, Saudi Arabia recorded a 2.3 percent annual rise in consumer prices in March, with inflation largely driven by housing and utility costs, while Dubai's rate moderated to 2.8 percent, down from 3.15 percent in February, supported by lower transport and food costs.

On a monthly basis, Oman's general index dropped by 0.36 percent in March compared to February.

Despite the decline, the fruit category saw a 3.25 percent increase, followed by the miscellaneous goods and services group which saw a 0.72 percent increase.

In contrast, transport prices fell 1.86 percent month on month, while the fish and seafood group dropped 3.53 percent.

The food and beverages category, which holds the highest weighting in the consumer price index basket, fell 0.74 percent year on year and 0.58 percent month on month.

Within this group, milk, cheese and eggs posted a 2.97 percent annual increase, while bread and cereals and meat fell by 0.55 percent and 0.44 percent, respectively.

Oman has continued to consolidate its fiscal position, building on the momentum of recent surpluses.

The Ministry of Finance recently reaffirmed its 2025 budget outlook, underpinned by sustained oil revenue and ongoing diversification initiatives.

The sultanate recorded a real gross domestic growth of 1.3 percent in 2023, supported by a robust non-oil sector, and projects GDP to reach 44.1 billion Omani rial ($114.66 billion) in 2025.

Non-hydrocarbon activities are expected to account for 70.5 percent of this total, reflecting progress in the country's Vision 2040 goals.

Additionally, public revenues are projected at 11.2 billion rial, with a continued focus on reducing public debt and boosting private sector participation.