Oman inflation jumps, showing cost of dollar peg

MUSCAT/DUBAI – Annual inflation in Oman, one of six Gulf oil producers, surged above 10 percent this year for the first time in at least 18 years, highlighting the cost of being pegged to the ailing dollar as food prices soared.

Food, beverage and tobacco costs- which account for almost a third of the consumer price index- surged 17 percent in January and 19.6 percent in February, the Omani Ministry of National Economy said on its Web site on Sunday.

Inflation climbed to 10.1 percent and 11.1 percent in the two months, respectively, the ninth consecutive rise. The consumer price index was at 120 points on Feb. 29, compared with 108 points a year earlier.