Muscat – The Ministry of Economy on Monday confirmed that inflation in Oman throughout 2025 remained in line with projections, which had estimated an average inflation rate of around 1% for the year.
The average inflation, as measured by the Consumer Price Index (CPI), stood at 0.94% from January to November last year, the ministry said in a statement to Oman News Agency.
The ministry noted that, at the local level, inflation continued on a moderate trajectory within target ranges. Global inflationary pressures remained relatively contained, despite fluctuations in international trade policies and rising customs duties, which continue to pose uncertainty and raise concerns about future inflation.
The Ministry of Economy emphasised that the moderation of inflation in Oman during the Tenth Five-Year Plan (2021–2025) resulted from the government’s proactive policies. Measures aimed at containing global inflation since 2021, including targeted support for food commodities and essential services, helped mitigate the impact of global price surges on local markets while safeguarding national economic growth and purchasing power.
The ministry said that maintaining a moderate inflation rate has also supported economic growth, particularly as the Central Bank of Oman (CBO) pursued monetary easing. Following decisions by the US Federal Reserve and Oman’s policy of linking the Omani rial to the US dollar, the CBO reduced interest rates on repo operations several times in 2025, from 5% at the end of 2024 to 4.25% by December 2025.
This easing improved local liquidity and lowered credit costs for the private sector. Key banking data for 2025 shows that total credit granted by the banking sector reached RO34.7bn by the end of October 2025, representing growth of 9%. Credit to the private sector rose by 5.8% to RO28.3bn.
The ministry highlighted that facilitating lending remains a strategic tool to empower the private sector as a partner in sustainable development and as a driver of growth under Oman Vision 2040.
Breaking down price movements within the CPI from January to November 2025, food and non-alcoholic beverages fell by 0.33%, while housing, water, electricity, and telecommunications remained stable. Miscellaneous goods and services rose by 6.8%, transport by 3.2%, restaurants and hotels by 1.8%, and health by 1.5%. Clothing and education experienced minor increases of around 0.45% during the first 11 months of 2025.
On the other hand, Oman’s general Producer Price Index (PPI) fell by 4.3% by the end of the third quarter of 2025 compared with the same period in 2024, driven by lower prices in mining, quarrying, and manufacturing. In contrast, the Import Price Index rose by 15.2%, reflecting a 34.7% surge in beverages and tobacco and a 12.1% increase 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 fell for the third consecutive month in November 2025, remaining nearly 22% below the peak recorded in March 2022.
