Price rise of goods and services pinches people

HOME BUDGET HIT: The prices of seafood went up by 6.49 per cent; the fruits prices shot up by 3.48 per cent; school fees also zoom

How much more are we paying as a result of the changing lifestyle patterns and technological advancements that have contributed to our consumption pattern?

Even the normal household expenditure that refers to cash spent on purchase of goods and services used for living purposes has seen an increase this year.

Most citizens and residents are feeling the pinch as the prices of almost all goods and services, including food, water, electricity, gas, housing and other fuels, have gone up, in some cases substantially, in the recent past.

Observer spoke to a wide section of people to get their response in this regard. “Owning a villa or a flat is not a big deal these days provided you have a permanent job and proportionate income to repay the loan. Its maintenance is becoming a major concern due to the rising costs,” says Suleiman al Lawati, a bank official.

According to data from the National Centre for Statistics and Information (NCSI), furnishing and home maintenance witnessed a 3.45-per cent rise in August this year compared with the corresponding month last year.

Education is another area, where many lament costs are skyrocketing with a continuous rise in school fees, transportation charges and stationery prices. Khalfan al Mamari is a public sector employee and father of four school-going children.

“Year after year, I am paying more for the education of my children. Private institutions are increasing fees at will,” Khalfan says.

Education has become 2.84 per cent costlier this year compared with the previous year, making parents to think of saving more to bring up their children. The biggest consumer upset came in seafood, the prices of which went up by 6.49 per cent. Although vegetable prices dropped 1.36 per cent, the fruits prices shot up by 3.48 per cent. “Fish is becoming costly now. We have to have a good amount money in our wallet when we think of buying fish,” points out Yaqoob, an Egyptian who is working in the Ministry of Education.

The increase in prices is expected to be sustained throughout in 2017 and 2018 as the government liberalises charges on energy and other goods and services. Citing a report from IMF, the Central Bank of Oman points out in a report that the inflation rate calculated in terms of consumer price index will stabilise at around 3 per cent in 2020. The year-on-year inflation rate for the first three months of 2017 was 2.8 per cent, which was mainly driven by a sharp increase in transport costs at 10.8 per cent.