Bahrain Inflation Highest in Over 3 Years

2026-08-27 09:10 By Erika Ordonez 1 min. read

Bahrain’s annual inflation rate rose to 3.0% in July 2026 from a 2.3% gain in each of the previous two months, marking the highest level since December 2022.

Prices of food and non-alcoholic beverages increased at a faster pace (7.1% vs 5.8% in June), while costs rebounded in recreation and culture (8.6% vs -0.6%) and restaurants and hotels (1.5% vs -0.3%).

Additionally, deflation eased for clothing and footwear (-8.9% vs -12.6%), housing and utilities (-1.3% vs -2.2%), and health (-0.1% vs -0.2%).

On the other hand, inflation in transport remained elevated, although it moderated to 9.1% from 10.6%, as did inflation in miscellaneous goods and services (2.4% vs 3.3%).

Costs declined further for alcoholic beverages and tobacco (-1.9% vs -0.6%), furnishings, household equipment, and routine household maintenance (-1.5% vs -1.2%), and communication (-0.5% vs -0.3%).

Prices remained unchanged for education at 2.8%.

On a monthly basis, consumer prices rose 0.3% in July from 0.9% in June.



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Bahrain Inflation Highest in Over 3 Years
Bahrain’s annual inflation rate rose to 3.0% in July 2026 from a 2.3% gain in each of the previous two months, marking the highest level since December 2022. Prices of food and non-alcoholic beverages increased at a faster pace (7.1% vs 5.8% in June), while costs rebounded in recreation and culture (8.6% vs -0.6%) and restaurants and hotels (1.5% vs -0.3%). Additionally, deflation eased for clothing and footwear (-8.9% vs -12.6%), housing and utilities (-1.3% vs -2.2%), and health (-0.1% vs -0.2%). On the other hand, inflation in transport remained elevated, although it moderated to 9.1% from 10.6%, as did inflation in miscellaneous goods and services (2.4% vs 3.3%). Costs declined further for alcoholic beverages and tobacco (-1.9% vs -0.6%), furnishings, household equipment, and routine household maintenance (-1.5% vs -1.2%), and communication (-0.5% vs -0.3%). Prices remained unchanged for education at 2.8%. On a monthly basis, consumer prices rose 0.3% in July from 0.9% in June.
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Bahrain’s annual inflation rate stood at 2.3% in June 2026, unchanged from the previous month and remaining at its highest level since May 2024. Prices increased at a faster pace for food and non-alcoholic beverages (5.8% vs 5.7% in May) and transport (10.6% vs 10.4%), while costs for education remained steady at 2.8%. Additionally, deflation eased for alcoholic beverages and tobacco (-0.6% vs -1.3%), clothing and footwear (-12.6% vs -12.7%), and furnishings, household equipment, and routine household maintenance (-1.2% vs -1.3%). In contrast, inflation slowed for miscellaneous goods and services (3.3% vs 3.4%), while prices declined for restaurants and hotels (-0.3% vs 0.2%), communication (-0.3% vs -0.2%), and recreation and culture (-0.6% vs 0.3%). Prices remained unchanged for housing and utilities (-2.2%) and health (-0.2%). On a monthly basis, consumer prices rose 0.9% in June from 0.4% in May.
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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.
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