Inflation outlook in Oman remains moderate: Central Bank of Oman

Inflation outlook in Oman remains moderate: Central Bank of Oman

The Central Bank of Oman (CBO) has once again reiterated that inflation in the Sultanate of Oman is expected to remain largely benign despite rising inflationary trends being reported elsewhere around the world.

The apex bank cited a number of factors for inflation continuing to remain moderate, not least because of strong oil revenues which have enabled the Omani government to tackle inflationary pressures through targeted interventions.

“As an oil exporter, rising commodity prices are a net positive for Oman as the higher proceeds from hydrocarbons have provided ample fiscal space to the government to counterbalance any inflationary pressures with targeted interventions to complement the impact of monetary policy actions,” the Central Bank noted in its 2022 Financial Stability Report issued here this week.

The report pointed out that despite global inflationary concerns, inflation expectations in Oman will remain moderate. “Unlike in many other economies where property prices and rents grew at record rates during the pandemic, the property prices in Oman fell in 2020 due to a decline in population and stabilised in 2021. Due to ample supply, housing costs are not expected to rise sharply in the near term,” the Central Bank said.

Likewise, the prices of utilities, such as water, gas