Oman’s inflation rate falls again in July

• CPI down to 0.41%
• Lowest since March 2021
• Expected to be lowest in GCC for the year

Oman’s rate of inflation in July dropped to its lowest level since March 2021, driven by a decline in transport and communications costs, as well as falls in the price of fruit, vegetables and meat.

Inflation in the sultanate, measured by the Consumer Price Index (CPI), fell to 0.41 percent last month, down from 0.69 percent in June, according to the latest data from the National Centre for Statistics and Information (NCSI).

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There have been successive declines throughout the year, buoyed by the steadying of global inflation levels and government measures to cap the price of fuel and essential commodities.

In terms of Oman's governorates, Muscat recorded the highest inflation rate of 0.7 percent in July, while the lowest inflation rate was registered by Al Buraimi (0.5 percent).

After experiencing one of the lowest inflation rates among GCC countries in 2022, Oman is expected to record an average inflation rate of 1.9 percent for 2023, the lowest expected inflation in the GCC, according to the IMF.

Growth is forecast to slow from 4.3 percent in 2022 to 1.8 percent this year, according to analysts at BMI, formerly Fitch Solutions.

This is below the 10-year historical average of 3.1 percent before the Covid-19 pandemic, and cuts to oil production are expected to act as a “significant drag” on economic activity.