Oman July inflation climbs to 27-month high

MUSCAT: Inflation in Oman climbed to a 27-month high of 4.6 percent on an annual basis in July and prices grew 0.5 percent on the month mainly due to a rise in food prices, data from the Gulf country's finance ministry showed on Sunday.

Analysts have expected prices in the small non-OPEC oil producer, which was hit by public unrest earlier this year, to edge higher on robust global commodity prices as well as additional government spending to defuse social tensions.

The sultanate's economy is seen expanding by 4.1 percent this year, helped by the government's increased infrastructure spending, after an estimated 4.2 percent growth in 2010.