MUSCAT : The Ministry highlighted that Oman has successfully navigated the global inflation crisis, maintaining local price stability while preserving real economic growth. From 2021 to 2024, the average inflation rate stood at just 1.4%, while real GDP growth reached 3.4%, nearing the Tenth Plan’s target of 3.5%.
During the first half of 2025, Oman achieved 2.3% real GDP growth, while inflation averaged 0.80% between January and September. International Monetary Fund projections indicate that Oman’s inflation will stay around 0.9% annually by the end of 2025, with real economic growth expected to reach 2.9% in 2025 and rise to 3.7% in 2026, supported by non-oil sector momentum and relaxed oil production restrictions.
The Ministry noted that preparations for the Tenth Plan began amid two major global shocks: the pandemic and the sharp drop in oil prices. These pressures led to negative inflation of –0.4% in 2020. Yet since 2021, inflation in Oman has consistently remained within target levels, even during 2022, when global inflation soared due to pandemic aftershocks, supply-chain disruptions, and the Ukraine conflict.
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Oman’s success, according to the Ministry, stems from a mix of economic stimulus measures, faster diversification efforts, and policies to empower the private sector and attract investment. Price stability has been further supported by the government’s fuel price stabilization policy, subsidies for key food commodities and essential services, and monetary policy alignment with U.S. interest rate trends due to the Omani rial’s peg to the dollar.
These collective policies, officials said, have allowed Oman to curb inflation effectively, ensuring that local price levels remain aligned with the broader social and economic objectives of Oman Vision 2040. This comes at a time when the global inflation rate hit 5.8% in 2024, with IMF forecasts showing continued variations across regions and an overall global slowdown in economic growth from 2024 to 2026.
Between January and September 2025, the lowest inflation increases were recorded in North Al Sharqiyah (0.16%), South Al Batinah (0.21%), North Al Batinah (0.41%), and Dhofar (0.51%). The highest increases were seen in Al Dakhiliyah (1.51%), Al Dhahirah (1.26%), Musandam (1.21%), and South Al Sharqiyah (1.02%).
Most major consumer price index groups, including housing, utilities, tobacco, communications, education, culture and entertainment, furniture, clothing, and footwear, remained stable. The categories that saw price increases included:
Miscellaneous goods & services: 6.35%
Transport: 3.06%
Health: 1.86%
Restaurants & hotels: 1.59%
Food and non-alcoholic beverage prices, however, declined by 0.55% during the same period.
Globally, the FAO Food Price Index recorded a 3.4% year-on-year rise in September 2025, though it remains nearly 20% lower than its March 2022 peak. The index fell slightly month-on-month due to lower prices for cereals, dairy, sugar, and vegetable oils, despite an increase in meat prices.
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