Bahrain Inflation Remains at Over 3-Year High

Bahrain’s annual inflation rate stood at 3.0% in August 2026, unchanged from the previous month and remaining at its highest level since December 2022. Prices of food and non-alcoholic beverages rose faster (8.1% vs 7.1% in July), as did recreation and culture (10.1% vs 8.6%) and miscellaneous goods and services (3.2% vs 2.4%). Additionally, deflation eased for alcoholic beverages and tobacco (-0.7% vs -1.9%), housing and utilities (-1.1% vs -1.3%), furnishings, household equipment, and routine household maintenance (-1.4% vs -1.5%), and communication (-0.2% vs -0.5%). On the other hand, inflation moderated in transport (7.8% vs 9.1%) and restaurants and hotels (1.1% vs 1.5%), while prices declined further for clothing and footwear (-9.4% vs -8.9%). Prices remained unchanged for education at 2.8% and health at -0.1%. On a monthly basis, consumer prices edged down to 0.2% in August from 0.3% in July.

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.

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.