Oman inflation holds at 0.81% as food, housing costs remain stable

Arab News

7 hours ago

RIYADH: Oman's inflation rose 0.81 percent in the first five months of 2025 year on year, driven by stable housing and fuel costs and a decline in key food prices, official data showed.
The Ministry of Economy attributed the subdued consumer price growth to declining costs in food and non-alcoholic beverages, which, along with housing and utilities, account for more than half the weighting in Oman's inflation index.
This comes as inflation is broadly easing across the Middle East and North Africa, though country-level trends remain mixed, with Jordan recording 1.98 percent, Saudi Arabia 2.2 percent and Dubai 2.3 percent in April. Egypt, however, posted a rise of 16.8 percent.
In its release, Oman's Ministry of Economy, citing its official spokesperson Salem bin Abdullah Al-Sheikh, stated that 'the stability of food and non-alcoholic beverage prices this year reflects the slowdown in global price increases and the continuation of government support policies for basic goods and services.'
It added: 'At the same time, the food production, marketing, and manufacturing system continues to be strengthened as part of the progress made in implementing the food security strategy and economic diversification targets of the Tenth Five-Year Plan (2021-2025).'
This comes as global food commodity prices edged up in June, driven by higher meat, vegetable oil, and dairy prices, according to the UN Food and Agriculture Organization.
The FAO Food Price Index averaged 128 points for the month, up 0.5 percent from May and 5.8 percent higher year on year. However, it remained 20.1 percent below its March 2022 peak.
The US Federal Reserve maintained steady interest rates but cautioned that tariffs could exacerbate inflation, while the IMF revised its global inflation forecast upward to 4.3 percent this year.
In Oman, the general index for import prices increased by 1.3 percent, while the producer price index rose by 4.1 percent by the end of the first quarter compared to the same period in 2024.
Food and non-alcoholic beverage prices fell by 0.17 percent from January to May compared to the same period in 2024. Notable declines included vegetables at 4.63 percent, fish and seafood at 3.69 percent, and meat at 0.13 percent. Prices of non-alcoholic beverages dropped by 0.11 percent, and bread and cereals by 0.01 percent.
Conversely, prices rose for sugar, jam, honey, and sweets by 3.13 percent; milk, cheese, and eggs by 2.88 percent. Fruit prices rose by 1.05 percent, followed by prices of oils and fats at 1.28 percent, while other food products saw a 3.40 percent increase.
The miscellaneous goods and services category saw the highest inflation increase at 6.04 percent, followed by health care at 2.71 percent, and transportation at 2.68 percent. Prices remained stable for tobacco and communications, with minor increases in other CPI components.
Geographically, inflation saw a slight decline of 0.04 percent in South Al Batinah Governorate by the end of the first quarter of 2025.
The highest inflation rates were recorded in Al Dakhiliyah at 1.58 percent, Musandam at 1.51 percent, and South Al Sharqiyah at 1.24 percent. The lowest increases were in North Al Sharqiyah at 0.21 percent and North Al Batinah at 0.42 percent, while other governorates saw inflation below 1 percent.
The agriculture and fisheries sectors grew by 2.8 percent in 2024, contributing 987 million Omani rials ($2.56 billion) to the gross domestic product at constant prices. Growth accelerated to 7.6 percent in the first quarter, adding 273.6 million rials to GDP, according to the spokesperson.
Oman has established over 80 markets, slaughterhouses, and stalls since 2021 under the Governorate Development Program. Ongoing projects include a slaughterhouse in Shaleem and Halaniyat Islands, Al Mawared Market in Sinaw, an agricultural products center in Najd, and a fisheries and food industries complex in Duqm.