Bahrain's annual inflation rate increased to 2 percent in December of 2018 from 0.7 percent in the previous month. It was the highest inflation rate since July, as prices rose faster for: transport (15.5 percent from 10.0 percent in November); miscellaneous goods & services (1 percent from 0.7 percent) and health (6 percent from 5.6 percent); restaurants (0.7 percent from 0.4 percent) and alcoholic beverages & tobacco (35.7 percent from 35.2 percent). In addition, cost rebounded for housing & utilities (4.1 percent from -0.1 percent) while prices went up at a softer pace for food & non-alcoholic beverages (1.1 percent from 2.5 percent). On the other hand, cost continued to fall for clothing & footwear (-1.3 percent from -1.6 percent); furniture & household equipment (-5 percent from -5.6 percent) and recreation & culture (-10.3 percent from -10.1 percent). On a monthly basis, consumer prices went down 0.4 percent, after showing no growth in November. Inflation Rate in Bahrain averaged 2.18 percent from 2008 until 2018, reaching an all time high of 5.22 percent in January of 2009 and a record low of -2.06 percent in March of 2011.
Inflation Rate in Bahrain is expected to be 3.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Bahrain to stand at 3.20 in 12 months time. In the long-term, the Bahrain Inflation Rate is projected to trend around 3.50 percent in 2020, according to our econometric models.