Higher transport cost pushes up inflation to 1.33%

Times News Service

MUSCAT: Growing transport cost in the aftermath of removing fuel subsidy has jacked up inflationary pressure in the Sultanate.

Oman registered a year-on-year inflation rate, on the basis of consumer price index, stood at 1.33 per cent in September 2016, mainly driven by a 6.57 per cent rise in prices in the transport sub-segment, and a 0.77 per cent rise in housing, water, electricity, gas and other fuels.

The Sultanate’s petrol prices surged ahead by around 50 per cent to 180 baisas between mid-January and now, while diesel prices also showed a similar growth. All these have increased the transportation cost of goods, especially essential food items.

Furnishings, household equipment and routine household maintenance went up by 0.92 per cent, according to the latest report published by the National Centre for Statistics and Information (NCSI).

Healthcare cost increased by 0.91 per cent, education registered a 3.03 per cent jump, restaurants and hotel prices were up by 0.37 per cent. Goods and different services rates rose 0.4 per cent.

In contrast, the group of foodstuff and non-alcoholic beverages prices came down by 0.77 per cent, clothing and footwear fell by 0.46 per cent, communications by 0.26 per cent, culture and entertainment by 0.48 per cent.

As far as the governorates are concerned, the Governorate of Dhofar witnessed the highest inflation rate of 2.66 per cent, followed by North and South Al Sharqyiah at 1.46 per cent, North Al Batinah at 1.43 per cent, Al Dhahirah at 1.33 per cent, Al Dakhiliyah at 1.3 per cent, Al Buraimi at 1.26 per cent and Muscat at 1.01 per cent.

In comparison with the previous month, the general index of consumer prices was down by 0.33 per cent, where foodstuff and non-alcoholic beverages experienced a drop of 0.21 per cent, clothing and footwear by 0.28 per cent and restaurants and hotels by 0.38 per cent.

Furnishings, household equipment and routine household maintenance came down marginally by 0.01 per cent, transport by 1.2 per cent and healthcare costs by 0.03 per cent while housing water, electricity, gas and other fuels and education settled at the same prices.- With inputs from Oman News Agency.