Oman's Inflation Holds at 0.81% Amid Stable Food and Housing Costs
The Sultanate of Oman experienced a modest inflation rate of 0.81 percent for the first five months of 2025, largely due to stable housing costs and food prices.
Riyadh: The latest official data from the Omani Ministry of Economy indicates that the country's inflation rate remained steady at 0.81 percent in the first five months of the year, with stabilizing housing costs and a decline in key food prices being significant factors.
In contrast to other regions, Oman has witnessed relatively subdued consumer price growth.
This trend aligns with broader easing of inflation across the Middle East and North Africa, although country-specific data presents a mixed picture.
For instance, Jordan reported a 1.98 percent inflation rate in April, while Saudi Arabia and Dubai experienced rates of 2.2 percent and 2.3 percent respectively.
On the other hand, Egypt's inflation rate surged to 16.8 percent during the same month.
According to the Ministry of Economy, the stabilization of food prices can be attributed to both global price declines and government policies aimed at supporting basic goods and services.
The data also suggests that Oman is bolstering its food production, marketing, and manufacturing capabilities as part of broader initiatives related to food security and economic diversification under the Tenth Five-Year Plan (2021-2025).
Despite these developments, global food commodity prices experienced a slight increase in June 2025, driven primarily by higher meat, vegetable oil, and dairy prices.
The UN Food and Agriculture Organization reported that its Food Price Index averaged 128 points for the month, representing a 0.5 percent rise from May and a 5.8 percent increase year-on-year.
However, this figure remains 20.1 percent below its March 2022 peak.
In addition to global market trends, domestic Omani indices reflect inflation dynamics within the country.
Import prices saw an increase of 1.3 percent while producer prices rose by 4.1 percent during the first quarter of 2025 compared to the same period in 2024.
Notably, food and non-alcoholic beverage prices experienced a decline of 0.17 percent from January to May 2025 compared to the same period in 2024, with specific decreases observed in vegetables (-4.63%), fish and seafood (-3.69%), and meat (-0.13%).
Conversely, prices for sugar, jam, honey, and sweets rose by 3.13 percent; milk, cheese, and eggs increased by 2.88 percent.
Fruit prices saw a rise of 1.05 percent, while oils and fats experienced a 1.28 percent increase.
Miscellaneous goods and services recorded the highest inflation rate at 6.04 percent, followed by healthcare (2.71%) and transportation (2.68%).
Prices for tobacco and communications remained stable with minor increases observed in other CPI components.
On a regional level, South Al Batinah Governorate witnessed a slight decline of 0.04 percent in its inflation rate during the first quarter of 2025.
The highest inflation rates were recorded in Al Dakhiliyah (1.58%), Musandam (1.51%), and South Al Sharqiyah (1.24%).
Lower increases were observed in North Al Sharqiyah (0.21%) and North Al Batinah (0.42%), with other governorates experiencing inflation rates below 1 percent.
Oman's agriculture and fisheries sectors contributed positively to the country's GDP, growing by 2.8 percent in 2024 and accelerating to 7.6 percent growth in the first quarter of 2025.
The government has made significant investments in markets, slaughterhouses, and stalls under its Governorate Development Program since 2021.
Current projects include a slaughterhouse on Shaleem and Halaniyat Islands, an agricultural products center in Sinaw, a fisheries and food industries complex in Duqm, and ongoing developments at the Al Mawared Market in Sinaw.
In contrast to other regions, Oman has witnessed relatively subdued consumer price growth.
This trend aligns with broader easing of inflation across the Middle East and North Africa, although country-specific data presents a mixed picture.
For instance, Jordan reported a 1.98 percent inflation rate in April, while Saudi Arabia and Dubai experienced rates of 2.2 percent and 2.3 percent respectively.
On the other hand, Egypt's inflation rate surged to 16.8 percent during the same month.
According to the Ministry of Economy, the stabilization of food prices can be attributed to both global price declines and government policies aimed at supporting basic goods and services.
The data also suggests that Oman is bolstering its food production, marketing, and manufacturing capabilities as part of broader initiatives related to food security and economic diversification under the Tenth Five-Year Plan (2021-2025).
Despite these developments, global food commodity prices experienced a slight increase in June 2025, driven primarily by higher meat, vegetable oil, and dairy prices.
The UN Food and Agriculture Organization reported that its Food Price Index averaged 128 points for the month, representing a 0.5 percent rise from May and a 5.8 percent increase year-on-year.
However, this figure remains 20.1 percent below its March 2022 peak.
In addition to global market trends, domestic Omani indices reflect inflation dynamics within the country.
Import prices saw an increase of 1.3 percent while producer prices rose by 4.1 percent during the first quarter of 2025 compared to the same period in 2024.
Notably, food and non-alcoholic beverage prices experienced a decline of 0.17 percent from January to May 2025 compared to the same period in 2024, with specific decreases observed in vegetables (-4.63%), fish and seafood (-3.69%), and meat (-0.13%).
Conversely, prices for sugar, jam, honey, and sweets rose by 3.13 percent; milk, cheese, and eggs increased by 2.88 percent.
Fruit prices saw a rise of 1.05 percent, while oils and fats experienced a 1.28 percent increase.
Miscellaneous goods and services recorded the highest inflation rate at 6.04 percent, followed by healthcare (2.71%) and transportation (2.68%).
Prices for tobacco and communications remained stable with minor increases observed in other CPI components.
On a regional level, South Al Batinah Governorate witnessed a slight decline of 0.04 percent in its inflation rate during the first quarter of 2025.
The highest inflation rates were recorded in Al Dakhiliyah (1.58%), Musandam (1.51%), and South Al Sharqiyah (1.24%).
Lower increases were observed in North Al Sharqiyah (0.21%) and North Al Batinah (0.42%), with other governorates experiencing inflation rates below 1 percent.
Oman's agriculture and fisheries sectors contributed positively to the country's GDP, growing by 2.8 percent in 2024 and accelerating to 7.6 percent growth in the first quarter of 2025.
The government has made significant investments in markets, slaughterhouses, and stalls under its Governorate Development Program since 2021.
Current projects include a slaughterhouse on Shaleem and Halaniyat Islands, an agricultural products center in Sinaw, a fisheries and food industries complex in Duqm, and ongoing developments at the Al Mawared Market in Sinaw.
