Food costs raise Oman inflation in first quarter

Muscat: Oman's price index rose by 2.2 per cent in the first quarter of 2010 compared to the same period last year, according to monthly statistical bulletin issued by the Ministry of National Economy.

The index also registered a hike by 1.8 per cent in the first quarter this year compared to the fourth quarter of 2009.

Food prices also rose, driven by increases in prices of sugar, rice, chicken, kingfish and corn oil.

The bulletin pointed out that the wholesale price for agricultural products recorded 9.4 per cent in the first quarter of 2010 due to hike in the prices of fruits and live animals by 18.8 per cent and 14.8 per cent respectively.

Foodstuff and beverages

The foodstuff, beverages and tobacco group registered an increase by 2.4 per cent due to the hike in the prices of frozen chicken by 2.9 per cent, kingfish by 1.1 per cent and corn oil by 11.1 per cent. The cereals, starch and foodstuff products rose by 5.8 per cent compared to 28.4 per cent for sugar and 3.9 per cent for rice.

The mineral group, machinery and equipment rose by 1.7 per cent due to the increase in iron price by 10 per cent, machinery and electrical appliances by 8.3 per cent, medical appliances, gauges, opticals and watches by 0.1 per cent.

On the other hand, the monthly statistical bulletin pointed out that the price of services group and minerals declined by 3 per cent due to the 8.6 per cent decrease in gypsum price.