Oman inflation jumps to 3.6% in March

13/04/2026 04:23 AST

Oman's annual inflation rate rose sharply to 3.6% in March, up from 2.0% in February, according to the latest Consumer Price Index (CPI) data released by the National Centre for Statistics and Information (NCSI).

The increase in inflation was primarily driven by higher prices across several key expenditure groups, notably miscellaneous goods and services, transport, food and beverages, restaurants and hotels, and furnishings and household items.

Data showed that the miscellaneous goods and services group recorded the largest year-on-year increase in March, rising by 13.8% and remaining the main contributor to overall inflation. This was followed by the transport group, where prices jumped by 9.4%.

The sharp uptick in inflation in March coincided with heightened tensions in the Middle East during the same period, particularly linked to the US-Israel war with Iran, which began on February 28. The conflict has significantly affected global oil prices, shipping costs and supply chains. For Gulf countries, including Oman, this may have translated into higher import costs, especially for food and consumer goods.

Global institutions such as the International Monetary Fund and the World Bank have warned that the Iran conflict will add to global inflationary pressures.

Food inflation rises to 4.3%
The food and non-alcoholic beverages group, which carries the largest weight in the sultanate's consumer basket, recorded a notable 4.3% increase in March compared with the same month in 2025. Prices in this group had risen by 2.8% year-on-year in February.

Within the food category, price movements were mixed. Vegetable prices recorded the sharpest increase at 15.6%, followed by fruits at 10.7%. Prices of non-alcoholic beverages rose by 3.4%, sugar, jam, honey and confectionery by 2.9%, meat by 1.8%, milk, cheese and eggs by 2.4%, bread and cereals by 1.2%, and fish by 3.1%.

Other expenditure groups recorded mixed increases. Prices in the restaurants and hotels group increased by 5.8%, while the furnishings, household equipment and routine household maintenance group rose by 3.0% compared with the same month last year. Education rose by 2.2% and health by 1.7%.

Meanwhile, prices in the housing, water, electricity, gas and other fuels group remained unchanged year-on-year, as did those in the communication and tobacco groups.

At the governorate level, Muscat recorded the highest annual inflation rate in March at 4.5%, followed by Dhahirah and Dakhiliyah at 4.2% and 4.1%, respectively. Inflation in Dhofar and North Batinah was comparatively lower at 1.8% and 1.7%, respectively.

The data also showed that the average inflation rate in the sultanate during the first three months of 2026 stood at 2.3%. The miscellaneous goods and services group recorded an average increase of 13.5% over the January-March period, indicating continued upward pressure in that category.

Muscat Daily