Oman inflation slows to new 40-month low

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Oman's inflation slowed to 1.2 percent in April, the lowest level since December 2009, data from the country's National Centre for Statistics and Information has showed. 

Food prices, which make up over 30 percent of the basket, increased 1.5 percent on an annual basis in April but fell 0.8 percent from the previous month. 

Rents and energy costs, which account for over 21 percent of consumer expenses, rose 0.6 percent year-on-year but dipped 0.2 percent month-on-month in April.

Analysts polled by Reuters in April expected average inflation of 3.2 percent in 2013, up from 2.9 percent in 2012.

Separately, Oman's year-to-date budget surplus reached OR1.034bn ($2.7bn) at the end of April, a nearly 30 percent drop from the surplus in the same period a year ago, data from the finance ministry showed.

Analysts polled by Reuters in April forecast that the non-OPEC oil exporter would post a fiscal surplus of 3.8 percent of GDP in 2013.

Oman based its 2013 budget on a projected oil price of $85 per barrel, expected expenditure of OR12.9bn and a deficit of OR1.7bn.

On Wednesday, the International Monetary Fund said Oman needs to contain state spending and raise non-oil revenue in the medium term to keep its fiscal balance sustainable.

"Spending restraint and non-oil revenue enhancing measures are needed to support a sustainable fiscal policy in the medium term," the IMF said following annual consultations with Oman.

"The mission recommends an initial adjustment of 1 percent of GDP (gross domestic product) in 2013 by rationalising the planned increase in workforce, and restraining goods and services spending," it said on its website.

The sultanate needs to adjust its fiscal balance by around 10 percent of GDP in total over the medium term as its budget health is becoming a significant challenge, the IMF added.

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Coming to America

Coming to America

As Barack Obama seeks to rebalance the bloated US economy, the...

Should the Gulf introduce VAT?

Should the Gulf introduce VAT?

The GCC’s plans to bring in value-added tax were withdrawn as...

Why are some of the world's biggest banks leaving the UAE?

Why are some of the world's biggest banks leaving the UAE?

Large Western banks have been selling off their local assets...

Most Discussed
  • 17
    Nakheel PR: The toughest job in Dubai?

    You forgot to mention the sewage pit between JLT and Jumeirah Park and the terrible landscaping in Jumeirah Park The chain link fencing they want to install... more

    Monday, 30 March 2015 9:05 AM - An Emaar Fan
  • 12
    Dubai Int'l T1 is too congested, says Indian airline boss

    Yes, T1 is overflowing, but Air India need to maintain its timing which is a big question mark most of the time. Plus quality of service, please have some... more

    Monday, 30 March 2015 4:13 PM - Shareen
  • 9
    Post traumatic stress?

    I once had a Emirates Post employee hang up on me when I asked her to repeat something. That said, the worst is my management company, Kingfield Management... more

    Sunday, 29 March 2015 6:07 PM - Sarah