Oman inflation rises in Aug for first time in 2009

MUSCAT, Oct 21 - Oman's inflation rose for the first time this year to 1.89 percent in August due to a sharp rise in food prices and property rent, the Ministry of National Economy data showed on Wednesday.

The Omani consumer price index stood at 129.6 points in August from 128.8 points in July, government data showed.

It was the first uptick in consumer prices after seven consecutive months of declines.

The food, beverage and tobacco index climbed to 151.6 points in August from 149.4 points in the previous month.

The rent component of the index, edged up to 140.5 points in August from 139.2 points in July, government data showed.

The annual inflation rate in Oman, which pegs its currency to the U.S. dollar, peaked at almost 14 percent last year but has steadily retreated as oil prices fell from record peaks in July 2008.

"Sharp rise in food prices, due to the recent weakness of the dollar, and higher rent because of the government spending, have pushed the inflation," Sankar Kailesam, an analyst at Gulf Investment Services said.