Consumer prices in Bahrain declined 0.4 percent year-on-year in July of 2019, following a 0.2 percent rise in the previous month. It was the first month of deflation since January 2012, as cost slowed for housing & utilities (3.0 percent vs 4.1 percent in June); transport (1.3 percent vs 2.2 percent); communication (4.0 percent vs 4.2 percent) and alcoholic beverages & tobacco (5.8 percent vs 7.3 percent). In addition, prices dropped for clothing & footwear (-9.6 percent vs -2.8 percent); furniture & household equipment (-5.1 percent vs 3.2 percent) and restaurants & hotels (-0.1 percent vs 1.3 percent). On the other hand, food & non-alcoholic beverages cost rebounded (2.4 percent vs -0.5 percent) while miscellaneous goods & services prices advanced faster (1.7 percent vs 1.3 percent). On a monthly basis, consumer prices dropped 0.3 percent, after increasing 0.2 percent in the prior month. Inflation Rate in Bahrain averaged 2.10 percent from 2008 until 2019, 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 1.10 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 2.70 in 12 months time. In the long-term, the Bahrain Inflation Rate is projected to trend around 2.60 percent in 2020, according to our econometric models.