Oman witnesses 0.7 pc increase in inflation

MUSCAT: The latest inflation report released by the National Centre for Statistics and Information reveals a 0.7 per cent increase in the general inflation index compared to June 2023 and June 2024, the same month of the previous year.

In June 2024, the inflation index across the Sultanate of Oman and its governorates displayed notable variations. The highest inflation rate was recorded in Al Wusta Governorate at 1.8 per cent, closely followed by Musandam Governorate at 1.6 per cent and Al Sharqiyah North Governorate at 1.5 per cent. Al Sharqiyah South Governorate and Dhofar Governorate both experienced an inflation rate of 1.4 per cent, while Al Batinah North Governorate saw a rate of 1.2 per cent. Al Batinah South Governorate reported a 0.9 per cent inflation rate, with Al Buraimi Governorate slightly lower at 0.8 per cent. Al Dakhiliyah Governorate experienced a 0.7 per cent inflation rate. The lowest rates were observed in Muscat Governorate and Al Dhahirah Governorate, each at 0.4 per cent. These figures highlight the diverse economic conditions across the different regions of Oman, with some areas experiencing more pronounced inflationary pressures than others.

A breakdown of inflation by sector offers additional insights into the economic landscape. The housing, water, electricity, gas, and other fuels sector, which carries the highest weight of 31.7, saw a modest inflation rate of 0.0 per cent, indicating that prices in these essential areas have remained steady over the past year. The transport sector, with a weight of 14.5, reported a negative 2 per cent inflation rate, reflecting lower costs for commuting and logistics. These figures provide a glimpse into the stability of essential services and the decreasing costs associated with transportation, which can significantly impact household budgets and overall economic conditions.

The inflation report for July 2024, based on the 2018 index, paints a detailed picture of economic trends in Oman. While the overall inflation rate remains low at 0.7 per cent, the variation across different regions and sectors highlights areas of concern and stability. The highest inflation rates are seen in essential services like housing and transport, which could impact household budgets. Conversely, the stability in food prices and deflation in sectors like household equipment and hospitality provide some relief to consumers.