Oman annual money supply rise slows

Dubai: Growth in Omani money supply eased for a second month to 34 per cent in June, its slowest annual rise in seven months, official data showed.

M2, the broadest measure of money circulating the Omani economy, hit 7.024 billion Omani riyals ($18.25 billion) on June 30 compared with 5.24 billion riyals a year earlier, the Ministry of National Economy said in a report on its website on Sunday.

That was the slowest rise in annual money supply since November. Oman money supply grew 40.5 per cent in February, the fastest pace since at least 2004.

The central bank's foreign assets and gold holdings grew 45.3 per cent in June to 3.86 billion riyals, the data showed.

Money supply growth is an indicator of future inflation, which in Oman jumped to a record near 14 per cent in June as food costs surged. Inflation in Oman rose to a record near 14 per cent in June as increasing food prices and a currency peg to the weak dollar pushed costs in the Gulf state higher for a 14th consecutive month.

Price index

Food, beverage and tobacco costs - which account for almost a third of the consumer price index - jumped 23.7 per cent, the Oman Ministry of National Economy said in a monthly report on its website.

Inflation is soaring across the world's biggest oil-exporting region, where economies that have boomed on the high price of oil are being hit by higher import costs.

Inflation, which hit 13.73 per cent in June, has been accelerating since May 2007, with the consumer price index jumping to 125.1 points on June 30, compared with 110 points a year earlier, ministry data showed.