Oman’s annual inflation rate eases to 0.7% in June

Oman’s annual inflation rate slightly eased to 0.69 percent by the end of June compared to 0.9 percent recorded in the previous month, the latest data from the country’s National Center for Statistics and Information revealed.

Oman’s inflation was driven by increases in key components of the consumer price index, with a notable surge in food and beverages by 2.18 percent.

This was predominantly due to price escalations across several food categories, including dairy products and eggs which grew by 9.78 percent, followed by seafood at 5.19 percent in June.

Other products that saw a rise in price include cooking oils and fats which increased by 4.81 percent, along with fruit, bread, and cereals which went up by 4.3 percent and 2.34 percent, respectively.

However, meat and vegetable prices were reduced by 0.12 percent and 5.65 percent, respectively, the report showed.

Additionally, price increases were recorded in sectors like hospitality which rose by 3.68 percent, and home furnishings and maintenance also increased by 2.93 percent. Meanwhile, miscellaneous goods and services rose by 2.33 percent.

Tobacco prices also saw an increase of 2.11 percent, along with culture and entertainment prices which were up by 1.73 percent.

The country’s healthcare sector also saw a price rise of 1.28 percent, while apparel and footwear prices grew by 0.56 percent, besides education which recorded a marginal rise of 0.05 percent.

The utility segment also saw a marginal rise of 0.02 percent. Conversely, the transportation and communication sectors experienced price decreases of 1.74 percent and 0.22 percent, respectively.

Al-Buraimi recorded the highest inflation rate among all the governorates in Oman at 1.3 percent.

In contrast, both North Al-Sharqiyah and South Al-Sharqiyah reported the lowest inflation rate at 0.2 percent while Muscat experienced an uptick in inflation by 1 percent and Al-Dakhiliyah and Dhofar governorates each recorded 0.7 percent.

Al-Dhahirah followed closely with a 0.6 percent inflation rate, and North Al-Batinah registered 0.4 percent.

Furthermore, Oman marked a significant year-on-year surge of 23.3 percent in its foreign direct investments during the first quarter of 2023 to reach 21.2 billion Omani rials ($55.5 billion).

At the end of the first quarter of 2023, the oil and gas extraction sector dominated foreign direct investments, boasting a significant rise to 15.8 billion rials compared to the same period last year which recorded 11.69 billion rials.

In contrast, the manufacturing industry observed a slight downturn in investment, dipping to 1.57 billion rials, down from 1.67 billion rials in the first quarter of 2022.