Bahrain Inflation Hits Over 1-Year High

Bahrain’s annual inflation rose to 1.3% in January 2026, accelerating from 0.5% in the previous month and marking its highest level since June 2024. Prices rebounded in recreation and culture (4.5% vs -0.8% in December), while costs continued to increase for transport (6.5% vs 4.2%), restaurants and hotels (3.9% vs 1.8%), miscellaneous goods and services (6% vs 4%), and health (0.7% vs 0.6%). In addition, education costs remained steady at 2.8%, and deflation eased in housing and utilities (-1.3% vs -1.9%), and communication (-1.5% vs -1.8%). Conversely, deflation persisted in food and non-alcoholic beverages (-2.9% vs -1.2%), and clothing and footwear (-5.7% vs -5.5%). On a monthly basis, consumer prices rose 0.9% in January, rebounding from a 0.7% decrease 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.