Muscat – Oman’s annual inflation rate rose to a 13-month high in September, driven mainly by higher transport costs, according to consumer prices data released on Monday by the National Centre for Statistics and Information (NCSI).

The sultanate’s consumer price index (CPI) showed annual inflation accelerating to 1.08% in September, up from 0.5% in August, marking the highest level since August 2024, when inflation stood at 1.13%.

The rise in inflation was largely attributed to a sharp increase in the transport segment, which holds a 15% weighting in Oman’s CPI. Transport prices jumped 4.5% year-on-year in September.

Prices in the miscellaneous goods and services category also recorded a strong increase of 7.6%, while the restaurants and hotels group saw prices climb by 2.6%, adding further upward pressure to the overall inflation rate.

In contrast, prices in the food and non-alcoholic beverages category – which accounts for nearly 24% of the consumer basket – declined by 0.5% year-on-year in September. Within this group, vegetable prices fell sharply by 7.4%, and fruit prices were down 1.6%. However, moderate increases were recorded in bread and cereals (0.8%), fish and seafood (2.3%), and oils and fats (1.8%).

Other major expenditure groups showed limited price changes. The recreation and culture segment recorded a slight decline of 0.2%, and furnishings, household equipment and routine maintenance dipped 0.1%. Meanwhile, prices for housing, water, electricity, gas and other fuels remained stable compared to September 2024.

On a month-on-month basis, consumer prices rose 0.61% in September, rebounding from a 0.5% decline in August. This marked the fastest monthly price increase since October 2022, signalling a mild pickup in domestic price pressures.

Despite the latest uptick, overall inflation in Oman remains modest by global standards. Annual inflation averaged 0.8% during the first nine months of 2025, reflecting subdued consumer demand, stable food prices, and the government’s continued control over key utility and fuel prices.

Inflationary pressures across the GCC have generally remained contained this year, underpinned by government subsidies, controlled import costs, and currency stability amid global trade and geopolitical tensions.

The International Monetary Fund (IMF) expects Oman’s average inflation to remain low at around 0.9% in 2025, supported by price caps on essential goods and the strength of the US dollar, to which the Omani rial is pegged.

Similarly, S&P Global Ratings recently projected that Oman’s inflation will remain moderate, averaging about 1.5% annually between 2025 and 2028, following an average of around 1% in 2024.