Oman maintains lowest inflation amid global crisis

MUSCAT : Proactive policies, economic reforms, and social spending initiatives have positioned Oman at the forefront in safeguarding economic stability and ensuring citizens’ welfare.

Global inflation, fueled by the pandemic, supply chain disruptions, and geopolitical tensions, peaked in 2022, impacting food prices, energy costs, and global trade. While many nations grappled with soaring inflation, Oman’s inflation rate averaged a modest 1.7% between 2021 and 2023, dropping further to less than 1% by late 2023. In 2024, inflation averaged just 0.8%, with October showing a notable annual decline.
The Ministry of Economy credited the success to targeted policies under Oman’s Tenth Five-Year Plan (2021-2025), maintaining price stability in critical sectors like housing, utilities, and communications. Additionally, initiatives to alleviate financial burdens and improve living standards, even during global crises, played a pivotal role.
Inflation rates varied slightly across Oman’s governorates. South Al Batinah recorded the lowest rate at 0.4%, while South Al Sharqiyah saw the highest at 1.9%. Factors such as local economic activity and geographic location influenced these disparities, monitored by the Ministry’s Governorate Competitiveness Index to ensure balanced pricing.

Globally, inflation is on a downward trend, with the International Monetary Fund (IMF) forecasting a decline to 5.8% in 2024 and further reductions by 2025. In Oman, the IMF report from November 2024 highlighted the Sultanate’s success, noting an inflation rate of just 0.6% during the year’s first three quarters, reinforcing the country’s position as a beacon of stability.

The Ministry of Economy expects inflation to remain moderate, emphasizing the importance of continued social spending on health, education, and housing.