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FINANCIAL NEWS
Inflation slows in Oman
13 Aug 2013
(MENAFN) Economy inflation in Oman slowed to reach an average of 2 percent in the first five months of this year, Times of Oman reported.
The government had expected an inflation rate of 4 percent for 2013. A bulletin by the National Centre for Statistics and Information (NCSI) said that consumer price index for the first five months was 2 percent.
Food and tobacco prices went up by 2.2 percent in May primarily due to an increase in vegetable prices by 11.1 percent. Meanwhile, fruit and non-alcoholic beverages prices grew by 3.6 percent and 5.1 percent respectively. Other food prices had a very minor increase or did not increase at all. Food, beverages and tobacco make up 30 percent of the consumer price index.
Sankar Kailasam, Senior vice-president at Gulf Baader Capital Markets, said: “Agricultural prices in the global markets are coming back to 2011 levels. Global economic growth is muted and therefore, commodity prices will be subdued for some more time. The crop situation is also pretty robust. These two factors are keeping the local prices down.”
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