Oman’s producer price index recorded an annual increase of 3.3 percent in the second quarter of 2024, according to the latest data from the National Center for Statistics and Information.
Producer prices in the mining and quarrying group rose 5.2 percent while prices of crude petroleum and natural gas products rose 5.4 percent. The statistics agency also revealed that metal ore prices rose 6.2 percent in the second quarter while prices of stone, sand and clay fell by 1.6 percent.
Manufacturing sees softer rise in prices
Oman saw a softer increase in producer prices in the manufacturing industries group where prices rose only 0.5 percent in Q2, with notable declines across the subgroups. Transportable goods saw a 1.1 percent rise in prices while metal products, machinery and equipment prices fell by 1 percent. However, food, beverages and textile prices rose by 2.4 percent.
Oman’s statistics center also noted a 2.2 percent increase in electrical energy producer prices and a 5.5 percent in water prices.
Consumer prices rise
The rise in producer prices during the second quarter falls in line with the rise in inflation Oman has recently witnessed. In July 2024, the inflation rate rose 1.5 percent year-on-year from 0.7 percent in June.
The Consumer Price Index (CPI) showed that the prices of food and beverages increased by 4.5 percent, various goods and services by 3.1 percent, health by 2.4 percent, and housing, water, electricity, gas, and other fuels by 1.7 percent.
Oman’s economic outlook
In a recent report, the International Monetary Fund expected Oman’s economy to continue growing despite challenges including regional geopolitical tensions, oil output cuts, and higher interest rates.
The IMF expects Oman’s real gross domestic product, which grew 1.3 percent last year, to moderate to 0.9 percent this year, due to oil output cuts. However, it expects the country’s economy to rebound and grow to 4.1 percent in 2025.
For more economy news, click here.
