Oman's annual inflation, based on the consumer price index (CPI), inched up to 3.72 per cent in February from 3.65 per cent in the previous month.
The figures come as Bank of America Merril Lynch (BoAML), in a recent global report, forecast Oman's average annual inflation for 2012 at one per cent, the lowest in the GCC.
The BoAML report predicted that 2012 consumer price index inflation for Saudi Arabia would be 1.3 per cent, four per cent in UAE, 4.3 per cent in Bahrain, two per cent in Kuwait and three per cent in Qatar.
In figures on the website of the erstwhile Ministry of National Economy, Oman's inflation increased marginally in the first two months of this year from 3.3 per cent in December 2011 when it fell sharply due to easing of price of food items.
Inflation inched up mainly due to the base effect in some components of CPI, like personal care items and educational services, which rose to 15.3 per cent and 12.3 per cent respectively, from 14 per cent and 12 per cent in January.
Inflation in the food items, beverages and tobacco category, which has more than 30 per cent weightage in Oman's CPI, declined to 2.5 per cent in February from 3.2 per cent in January.
The prices of vegetables and fruits declined from previous months, but prices of meat, poultry and fish products are still significantly higher in the market compared to last year.
Dr Fabio Scacciavillani, chief economist of the Oman Investment Fund, said that no inflationary pressures are expected for the sultanate in the next five-six months.
He said, "Inflation is almost stable and the marginal increase is due to seasonal factors and the base effect, not because of the macroeconomic or global factors. Main utility items like housing, rent, fuel, water and electricity are stable in terms of prices.
"Not much volatility has been witnessed in global commodity prices.
"The prices of personal care items and educational services were low this time last year, but the prices for these items went up sharply four-five months ago and will continue throughout this year."
© Muscat Daily 2012
