Bahrain Inflation Slows Sharply in December

Bahrain’s annual inflation rate eased to 0.5% in December 2025 from 1.1% in November. Deflation deepened across several categories, including food and non-alcoholic beverages (-1.2% vs. -0.1%), clothing and footwear (-5.5% vs. +3.4%), utilities (-1.9% vs. -0.9%), and alcoholic beverages and tobacco (-0.5% vs. -0.1%). Prices also declined in communication (-1.8% vs. -2.3%). Meanwhile, inflation slowed for restaurants and hotels (1.8% vs. 4.8%), while transport (4.2%) and healthcare (0.6%) were unchanged from the previous month. On a monthly basis, consumer prices fell 0.7% in December, reversing a 0.6% increase in November.

The annual inflation rate rose to 1.1% in November 2025, from a 0.1% increase in the previous month. This marked the highest level since July 2024, as prices rebounded sharply for electricity, gas, and other fuels (9.6% vs -1.1% in October), and recreation and culture (0.5% vs -0.9%). Costs also rose further in transport (4.2% vs 2.3%) and restaurants and hotels (4.8% vs 2.2%). At the same time, inflation remained unchanged for education (2.8%), and health (0.8%), while deflation eased for food and non-alcoholic beverages (-0.2% vs -1.5%), alcoholic beverages and tobacco (-0.1% vs -0.7%), housing and utilities (-0.9% vs -1.6%), and furnishings, household equipment, and routine household maintenance (-2% vs -2.2%). Meanwhile, price growth moderated for miscellaneous goods and services (3.5% vs 4%), while prices continued to fall in clothing and footwear (-3.4% vs -2.9%). On a monthly basis, consumer prices increased by 0.6% in November, following a flat reading in the previous month.

The annual inflation rate in Bahrain edged up by 0.1% in October 2025, following a flat reading in the previous month. This marked the second consecutive month of inflation after five months of deflation. Prices for transportation rose to 2.3% from a flat reading in September, while prices rose at a faster pace for health (0.6% vs 0.2%). At the same time, deflation eased for clothing and footwear (-2.9% vs -3.8%), while prices remained unchanged for education (2.8%), and restaurants and hotels (2.2%). Meanwhile, costs continued to fall for food and non-alcoholic beverages (-1.5% vs -0.6%), alcoholic beverages and tobacco (-1.1% vs -0.5%), and housing and utilities (-1.6% vs 1.4%). Inflation also slowed for miscellaneous goods and services (4% vs. 4.2%). On a monthly basis, consumer prices were flat in October, following a 0.5% increase in the previous month.