Omani Inflation Slowed to Four-Year Low in July
Omani inflation slowed to a four year low of 1.8 percent in July, the economy ministry said today, without giving a breakdown of the consumer price index.
The inflation rate fell from 2.9 percent in June, the ministry said on its Web site. Inflation in the Sultanate was last below 1.8 percent in August 2005, according to Bloomberg data compiled from the ministry.
Inflation in the Gulf Cooperation Council has slowed after oil prices plummeted from July 2008’s peak of $147.27 a barrel. The U.S. dollar, to which Oman’s currency is pegged, has also strengthened, making imports cheaper. Gulf states are also seeing a drop in real estate prices, with the most notable decrease in the United Arab Emirates, where prices in Dubai have halved.
The U.A.E. and Qatar will see the greatest reversal in inflation trends from the highest regional rates last year to deflation this year, Monica Malik, an economist at EFG-Hermes, said in a report on Aug. 26.
The GCC is an economic and political bloc including the U.A.E., Saudi Arabia, Kuwait, Qatar, Bahrain and Oman.