MUSCAT: Oman’s inflation rate has been rising, primarily driven by significant price increases in various sectors. Personal goods and services recorded the highest rise, up by 5.5%, reflecting the growing cost of everyday necessities. Other key sectors that experienced price hikes include health, which saw an increase of 3.2%, and food and non-alcoholic beverages, which rose by 1.9%. Additionally, culture and entertainment prices climbed by 0.7%, while restaurants and hotels saw a similar rise. Clothing and footwear also experienced a slight increase of 0.5%. However, some sectors saw more moderate price adjustments, with the furniture, household equipment, and maintenance group seeing a modest rise of 0.3%, and the education group experiencing a marginal increase of 0.1%.
Despite the overall price increases, some sectors have witnessed a decrease in prices. The transportation group experienced a notable reduction, with prices dropping by 2.8%. This decrease is particularly significant, as transportation costs have typically been one of the more volatile categories in the inflation index. Additionally, essential categories such as housing, water, electricity, gas, and fuel maintained stable prices, as did communications and tobacco. These steady categories have helped to offset some of the upward pressure on the overall inflation rate.
Within the food and non-alcoholic beverages group, vegetables recorded the most significant price increase, rising by 11%. This was followed by dairy products, with milk, cheese, and eggs increasing by 5.4%. The price of fruits also rose by 4.7%, while oils and fats, as well as sugar, jam, honey, and sweets, saw an increase of 2.4%. On the other hand, some food items experienced price declines. Fish and seafood saw a notable decrease of 10.4%, and bread and grains prices dropped by 0.5%. These mixed trends in the food sector reflect both supply and demand factors that are influencing prices in the region.
Governorate-level data highlights that Musandam experienced the highest inflation rate, recording a 1.4% rise by the end of November 2024. Other governorates also saw increases, including South Al Sharqiyah (1.2%) and Al Wusta (0.9%). Al Buraimi, which saw a 0.6% increase, and Muscat, North Al Sharqiyah, Al Dhahirah, and Al Dakhiliyah, all recorded a 0.5% rise. Dhofar experienced a smaller inflation increase of 0.4%, while North Al Batinah saw a modest 0.2% rise. The only governorate to record a decrease was South Al Batinah, where inflation dropped by 0.3%. This localized variation in inflation rates indicates the regional differences in economic conditions across Oman.
