MUSCAT: The Sultanate of Oman recorded an average inflation rate of 0.81 percent during the first five months of 2025 compared to the same period in 2024, according to the Ministry of Economy’s Consumer Price Index report. The data highlighted a 1.3 percent rise in the general import price index and a 4.1 percent increase in the producer price index by the end of Q1 2025. Geographical analysis showed mixed inflation rates across governorates, with A’Dakhiliyah registering the highest at 1.58 percent, followed by Musandam at 1.51 percent and South A’Sharqiyah at 1.24 percent, while South Al Batinah saw a slight decline of 0.04 percent.
Dr. Salim Abdullah Al-Sheikh, the official spokesperson for the Ministry of Economy, noted that the mild inflation was driven by stable prices in major consumer categories. Food and non-alcoholic beverages recorded a 0.17 percent decline, with vegetables dropping by 4.63 percent and seafood by 3.69 percent. Meat, beverages, and cereals saw minor declines, while sugar, dairy, fruits, and oils experienced slight increases. Stable housing and utility prices also contributed to controlling overall inflation, as these two sectors make up more than half of the CPI weight in Oman.
He further added that the highest inflation was seen in miscellaneous goods and services at 6.04 percent, followed by healthcare at 2.71 percent, transport at 2.68 percent, and restaurants and hotels at 1.08 percent. The Ministry attributes food price stability to global trends and continued subsidies on essentials under Oman’s Tenth Five-Year Plan, which includes enhancing domestic food production and reducing reliance on imports through improved agricultural and fishery supply chains.
Oman’s agriculture and fisheries sector saw solid growth, contributing RO 987 million to GDP in 2024 and growing by 7.6 percent in Q1 2025. Over 80 new markets and food infrastructure projects have been developed across governorates since 2021, including hubs in Dhofar, Sinaw, Duqm, and the central market “Silal” in Barka. Meanwhile, global inflation risks remain, as the IMF and U.S. Federal Reserve project rising inflation in 2025 driven by potential trade barriers, although Oman continues to manage domestic inflation through targeted policy measures.
