RIYADH: Oman’s inflation rate dropped to a 28-month low of 0.41 percent in July, propelled by declining transportation costs and the stable prices of essential goods such as food items, utilities, fuel, and housing rent, according to the National Center of Statistics and Information.
This figure marks a decline from the previous month’s 0.69 percent, representing the lowest annual inflation rate since March 2021. Reflecting the prevailing downward trend in 2023, the year has witnessed consistent price decreases, influenced by global inflation easing and government measures to control fuel and essential commodity costs.
Oman also experienced fluctuations in key components of the consumer price index. While food and beverage prices, accounting for a weightage of 24 percent, rose by 1.36 percent in July compared to a 2.18 percent surge in June, several food categories demonstrated price stability.
Prices for fruits and vegetables decreased by 2.31 percent and 1.72 percent respectively. Meanwhile, meat prices fell by 0.6 percent in July.
On the flip side, cooking oil and fats prices increased by 5.03 percent, bread and cereal prices grew by 2.24 percent, and fish and seafood products prices rose by 1.57 percent annually in July.
The most significant rise in the food and beverage sector was witnessed in the milk, cheese, and eggs group, which reported a 10 percent annual increase.
In contrast, the cost of housing, water, electricity, gas, and other fuels remained consistent in July 2023 compared to the previous year, according to the data.
In its recently published Financial Stability Report 2023, the central bank highlighted the success of the country in controlling the repercussions of global inflation.
“Oman has managed to mitigate the severe spillover effects of global inflationary pressure. This can be attributed to the distinct financial cycle, flexible labor market, and proactive fiscal measures implemented by the government,” stated the report.
The oil exporter’s robust fiscal position has improved due to higher energy prices and hydrocarbon revenues, noted the central bank.
Consequently, this allowed the government to counterbalance inflation with targeted interventions that would complement the effects of monetary policy actions.
