Oman's inflation rate eases slightly in Sept

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RATE DOWN: Oman's inflation rate eased slightly in September. (Getty Images)

Annual inflation in Oman eased slightly but held above 13 percent for the fifth straight month in September as food costs continued to exert price pressures on the Gulf state.

Food, beverage and tobacco costs - which account for almost a third of the index - jumped 23.9 percent, up from a gain of 23.5 percent in August, according to Ministry of National Economy data released on Wednesday.

The consumer price index hit 128.5 points on Sept. 30 compared to 113.30 points a year earlier, the ministry said.

Inflation in Oman, which has almost doubled in a year, was likely to fall below 10 percent by early 2009 due to the dollar's strength and lower commodity prices, Oman Central Bank Executive President Hamood Sangour al-Zadjali said in September.

Like most of its neighbours in the world's biggest oil-exporting region, Oman pegs its rial to the dollar, which spurred inflation in the past two years as the U.S. currency fell to record lows against the euro, driving up import costs.

But price pressures have eased since the summer as the dollar regained momentum and a global financial crisis put downward pressure on oil prices and building material costs.

The pace of rental increases in Oman fell in September to 18.8 percent from 19.5 percent a month earlier, the data showed.

M2 money supply growth, an indicator of future inflation, also eased in September to 30.3 percent from 31.1 percent in August, hitting 7.12 billion rials ($18.49 billion) at the end of September, the ministry added. (Reuters)

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