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RIYADH: A rise in the prices of several categories led Oman’s inflation rate to increase by 0.7 percent in December year on year for the base year 2018, according to new data.
Released by the National Center for Statistics and Information, the data shows a rise in prices across various personal goods and services groups, including a 4.5 percent increase in personal goods and services, a 3.2 percent rise in health, and a 1.7 percent increase in food and non-alcoholic beverages.
The restaurants and hotels group also saw a surge of 0.8 percent, the culture and entertainment group rose by 0.6 percent, and the clothing and footwear group grew by 0.5 percent.
Additionally, the furniture, household equipment, and maintenance group increased by 0.4 percent, while the education group saw a slight rise of 0.1 percent.
This data aligns with broader resilience observed across the Gulf Cooperation Council region. An International Monetary Fund report released in December highlighted how GCC economies have successfully weathered recent shocks, supported by strong non-hydrocarbon growth and ongoing reforms.
Oman’s economic resilience has been recognized internationally, with its sovereign credit rating recently upgraded to investment grade.
This economic strength is further reflected in Oman’s 6.2 percent budget surplus and 2.4 percent current account gain in 2024, driven by prudent fiscal policies, high oil prices, and growing non-hydrocarbon exports.
The consumer price index data also revealed specific increases in food prices. For example, the vegetable group rose by 7.6 percent, the milk, cheese, and eggs group increased by 3.8 percent, and other food products not classified under another category saw a 3.7 percent rise.
Other food categories such as sugar, jam, honey, and sweets rose by 2.8 percent, the meat group increased by 2.6 percent, the fruits group rose by 2.2 percent, and oils and fats saw a 1.6 percent increase.
In contrast, the prices of the transportation group decreased by 0.8 percent, the non-alcoholic beverages group dropped by 0.5 percent, and the fish and seafood group saw a significant decrease of 6.3 percent.
Meanwhile, the prices of the housing, water, electricity, gas, and other fuels, communications, and tobacco groups remained stable. The data also revealed that the prices of the bread and grains group stayed unchanged.
Looking ahead, the nation predicts a modest 2.7 percent growth in gross domestic product (GDP) this year, while IMF projections released earlier this month forecast a slightly higher expansion of 3.1 percent.
Inflation has continued to ease in Oman, declining to 0.6 percent during the first 10 months of 2024, compared to 1.0 percent in 2023.