Campaign to understand inflation

The Ministry of Economy is conducting an awareness campaign to understand the impact of inflation on family budget.

Inflation is currently part of everyone’s conversation. In its explanation, the ministry stated, “It is the continuous rise in the general level of prices of goods and services of interest to citizens.”

In his comments on inflation, Ali Abdulaziz, who does household shopping for his family, said, “The impact of inflation is seen in his shopping items. If RO 10 would suffice for regular shopping in the past, it is not so anymore. You get fewer items now. It seems the value of money has reduced,” he pointed out.

“The impact of inflation can be seen in the whole lifestyle,” said another shopper, Yasser Said.

Similarly, Abdulaziz al Sakiti feels the impact but calls it a global phenomenon. “Around the world, it is the same. Inflation has affected me personally, from water to gas to clothes. Last year was better than this year.”

According to the National Centre for Statistics and Information’s monthly consumer price survey data, the inflation rate of consumer prices in the Sultanate of Oman in August reached 2.4 per cent.

In their campaign, the Ministry of Economy explained that the recent increase in inflation has come as a surprise to many. As of mid 2022, global inflation reached 7.8 per cent, the highest since the 2008 crisis. In advanced economies, it rose to 6.9 per cent, which is the highest level since 1983, while in emerging economies, it reached 9.4 per cent, the highest since 1995. The International Monetary Fund predicted that inflation in 2022 would reach 6.6 per cent in advanced economies, 9.5 per cent in emerging market and developing economies.

According to the Ministry of Economy, the course of inflation is unprecedented under the impact of the Covid-19 pandemic on global economies. Measures to revitalise the economies and recover from the effects of the pandemic (increased demand) suffered due to the Ukraine conflict and its impact on food-exporting countries. The pandemic seems to have changed people’s consumption patterns and disrupted supply chains.

@lakshmioman