Bahrain's annual inflation rate slowed to 0.5 percent in October 2018 from 0.8 percent in the previous month. It was the lowest inflation rate since February 2017, as prices dropped 5.4 percent for furniture & household equipment (from a 3.7 pct gain in September) and declined further for housing & utilities (-0.2 pct from -0.1 pct). Meantime, cost continued to fall for recreation & culture (-9.6 pct, the same as in the prior month) and inflation was steady for alcoholic beverages & tobacco (at 37.9 pct); health (at 5.0 pct) and restaurants (at 0.4 pct). Contrarily, prices advanced faster for food & non-alcoholic beverages (1.5 pct from 0.7 pct) and transport (9.6 pct from 9.5 pct); while cost rebounded for miscellaneous goods & services (0.3 pct from -0.7 pct) and declined less for clothing & footwear (-1.7 pct from -5.2 pct). On a monthly basis, consumer prices edged down 0.1 percent, after decreasing 0.8 percent in the previous month. Inflation Rate in Bahrain averaged 2.20 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 3.00 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.