Bahrain Inflation Hits 2-Year High

Bahrain’s annual inflation rate rose to 2.3% in May 2026 from 1.4% in the previous month, marking the highest level since May 2024. The acceleration was driven by a rebound in prices for food and non-alcoholic beverages (5.7% vs -0.1% in April) and restaurants and hotels (0.2% vs -0.3%), while inflation continued to increase in transport (10.4% vs 10.0%) and education (2.8%, unchanged). Additionally, deflation eased in clothing and footwear (-12.7% vs -14.0%), communication (-0.2% vs -0.8%), and furnishings, household equipment and routine household maintenance (-1.3% vs -2.2%). Meanwhile, inflation slowed in recreation and culture (0.3% vs 3.4%) and miscellaneous goods and services (3.4% vs 4.1%), while prices fell further for alcoholic beverages and tobacco (-1.3% vs -0.2%), housing and utilities (-2.2% vs -2.1%), and health (-0.2% vs -0.1%). On a monthly basis, consumer prices rose 0.4% in May after a flat reading in April.

Bahrain’s annual inflation rose to 1.4% in April 2026 from 1.1% in the previous month. This marked the highest level since June 2024, as prices increased faster in transport (10.0% vs 8.7% in March), along with a sharp rebound in recreation and culture costs (3.4% vs -18.0%). At the same time, deflation eased in alcoholic beverages and tobacco (-0.2% vs -1.3%), health (-0.1% vs -0.3%), communication (-0.8% vs -1.3%), and restaurants and hotels (-0.3% vs -0.4%). Meanwhile, prices for food and non-alcoholic beverages declined (-0.1% vs 2.8%), while deflation persisted in clothing and footwear (-14.0% vs -10.1%), housing and utilities (-2.1% vs -2.0%), and furnishings, household equipment and routine household maintenance (steady at -2.2%). Price growth also slowed in miscellaneous goods and services (4.1% vs 5.0%). On a monthly basis, consumer prices were unchanged in April, following a 0.4% increase in March.

Bahrain’s annual inflation rose to 1.1% in March 2026 from 0.5% in the previous month, driven by a rebound in food and non-alcoholic beverage prices (2.8% vs -2.7% in February). Price pressures also strengthened in transport (8.7% vs 6.8%), while inflation in education remained steady at 2.8%. At the same time, deflation eased in furnishings, household equipment, and routine household maintenance (-2.2% vs -2.6%). In contrast, price growth slowed in miscellaneous goods and services (5% vs 6%), while costs declined in health (-0.3% vs 0.3%) and restaurants and hotels (-0.4% vs 0.9%). Deflation also persisted across several categories, including alcoholic beverages and tobacco (-1.3% vs -0.9%), clothing and footwear (-10.1% vs -7.7%), housing and utilities (-2% vs -1%), and recreation and culture (-18% vs -12.3%), while deflation in communication remained unchanged at -1.3%. On a monthly basis, consumer prices rose 0.4% in March, rebounding from a 0.5% decline in February.