MUSCAT: The Sultanate of Oman witnessed a marginal year-on-year increase of 0.7% in consumer prices in December 2023. Kamco Invest has released its latest report on GCC inflation, shedding light on the regional trends and providing insights into the economic landscape. The report highlights the inflationary situation in Oman, shedding light on the country's performance compared to other GCC nations.
According to the report, Oman's marginal year-on-year increase was driven by a 2.9% growth in the food and non-alcoholic beverage index, the second largest weighted index in the country. Other contributing factors include a 1.6% increase in the furnishing household equipment index and modest growth in recreation & culture indices.
However, Oman's inflation rate has been on a downward trajectory, reaching its lowest monthly growth point since January 2022 until December 2023. The decline in the transport index, clothing and footwear index, and education index moderated inflation growth in Oman, resulting in an overall subdued growth in the price of goods in the country.
Overall, the report presents a comprehensive overview of inflation in the GCC region, covering Bahrain, Kuwait, Qatar, Saudi Arabia, the United Arab Emirates (UAE), and Oman. Each country's inflation performance is analysed, providing valuable insights into their respective economic landscapes.
Bahrain, with its lowest inflation rate in the GCC during December 2023, recorded a year-on-year drop of 0.3%. Kuwait experienced a modest increase in its Consumer Price Index (CPI) with a year-on-year growth of 3.4% in December 2023. Qatar recorded a moderate inflation rate increase of 1.6% year-on-year in 2023. Saudi Arabia witnessed an average annual CPI growth of 2.3% in 2023 compared to the previous year. In the UAE, the Dubai Consumer Price Index experienced a moderate increase of 3.3% in December 2023.