Inflation
in Oman During 2025 Aligns with Forecasts, Averaging 0.94%

Muscat,
5 Jan 2026 (ONA) — The Ministry of Economy has confirmed that the inflation
trajectory in the Sultanate of Oman throughout 2025 aligned with projections,
which estimated a rate of approximately 1 percent. The average inflation in the
Consumer Price Index (CPI) recorded 0.94 percent from January to November of
last year.

The
Ministry noted that on a local level, inflation continues its moderate path
within target ranges. Global inflationary pressures remain relatively limited
despite variables in international trade policies and rising customs duties,
which still cast a shadow of uncertainty and raise concerns about future
inflation.

The
Ministry emphasized that the moderation of inflation in Oman over the years of
the Tenth Five-Year Plan (2021–2025) resulted from the government’s adoption of
proactive policies. These measures, aimed at containing global inflation since
2021, included targeted support for food commodities and basic services, which
mitigated the impact of global price surges on local markets and protected
national economic growth and purchasing power.

Maintaining
a moderate inflation rate has served as a catalyst for economic growth,
particularly as the Central Bank of Oman (CBO) shifted toward monetary easing.
Following the US Federal Reserve’s decisions and Oman’s policy of linking the
Omani Rial to the US Dollar, the CBO lowered interest rates on repo operations
multiple times in 2025, dropping from 5 percent at the end of 2024 to 4.25
percent by December 2025.

This
easing has enhanced local liquidity and reduced credit costs for the private
sector. Key banking data for 2025 shows that total credit granted by the
banking sector reached RO 34.7 billion by the end of October 2025, a growth of
9.0 percent. Credit granted to the private sector rose by 5.8 percent to reach RO
28.3 billion.

The
Ministry highlighted that facilitating lending is a strategic enabler to
empower the private sector as a partner in sustainable development and an
engine for growth under Oman Vision 2040.

The
Ministry detailed various price shifts within the CPI from January to November
2025 as food and non-alcoholic beverages fell by 0.33 percent. Groups such as
housing, water, electricity, and telecommunications remained stable.

Miscellaneous
goods and services rose by 6.8 percent, transport by 3.2 percent, restaurants
and hotels by 1.8 percent, and health by 1.5 percent. Clothing and education
saw minor increases of approximately 0.45 percent.

A’Dakhiliyah
Governorate recorded the highest inflation at 1.63 percent, followed by A’Dhahirah
(1.54 percent) and Musandam (1.21 percent).

North
A’Sharqiyah recorded the lowest inflation rate in Oman at 0.29 percent.

The
general Producer Price Index (PPI) decreased by 4.3 percent by the end of the
third quarter of 2025 compared to the same period in 2024, driven by a decline
in mining, quarrying, and manufacturing prices. Conversely, the Import Price
Index rose by 15.2 percent, impacted by a 34.7 percent surge in beverages and
tobacco and a 12.1 percent rise in machinery and transport equipment.

Global
commodity prices are expected to continue declining into 2026, reaching their
lowest levels in six years. The FAO Food Price Index also dropped for the third
consecutive month in November 2025, remaining nearly 22 percent below the peak
recorded in March 2022.

—Ends/AG