Oman’s inflation expected to slow further in 2023

Oman’s inflation expected to slow further in 2023

Muscat – Oman’s annual inflation, which remained relatively low in 2022 despite rising global inflation, is expected to further decelerate this year, thanks to government subsidies, price caps on certain products, and a strengthening US dollar.

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 per cent for 2023, the lowest expected inflation in the GCC, according to the International Monetary Fund (IMF).

The inflation rate in Oman decreased to 1.6 per cent in March 2023 from 1.9 per cent recorded in the previous month, the lowest monthly reading since June 2021. The sultanate witnessed the second-lowest average inflation rate among GCC countries in 2022 at 2.8 per cent, following Saudi Arabia which registered an inflation rate of just 2.5 per cent during the year.

The IMF expects GCC inflation to further decrease in the next two years, with an average of 2.9 per cent in 2023 and 2.3 per cent in 2024.

‘Lower inflation in GCC countries is mainly attributed to governmental interventions such as price caps on certain products, subsidies on key products or utilities, and the strengthening of the US dollar, which all GCC countries have