Oman inflation hits 13.2 per cent

13 July 2008
Inflation in Oman hit a record high of 13.2 per cent in May, driven mainly by food prices and rental costs that are inflating prices across the region.

Figures from the Ministry of National Economy show that food, beverage and tobacco costs rose by 22.9 per cent in the year to the end of May, compared with the year to the end of April. Rental costs rose by 16.6 per cent.

The headline inflation figure is a slight increase on the 12.43 per cent inflation recorded the previous month. National Bank of Abu Dhabi is now predicting that inflation in Oman could hit 14.4 per cent by the end of the year.

Food prices are rising internationally as global shortages affect prices. Oman and the rest of the GCC are also coping with the inflationary effects of pegging their currencies to the falling US dollar, while their own economies are continuing to expand.

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