Bahrain Inflation Hits Over 3-Year High

Bahrain’s annual inflation rate rose to 3.1% in September 2026, following a 3.0% increase in each of the previous two months, marking its highest level since December 2022. Prices accelerated in transport (11.6% vs 7.8% in August), while costs rebounded in alcoholic beverages and tobacco (3.4% vs -0.7%), furnishings, household equipment and routine household maintenance (0.9% vs -1.4%), and communication (0.2% vs -0.2%). At the same time, deflation eased in clothing and footwear (-9.1% vs -9.4%). In contrast, price growth slowed for food and non-alcoholic beverages (8.0% vs 8.1%), recreation and culture (2.9% vs 10.1%), restaurants and hotels (0.8% vs 1.1%), and miscellaneous goods and services (2.5% vs 3.2%), while prices in education were unchanged after rising 2.8% previously. Housing and utilities costs continued to fall (-1.3% vs -1.1%). On a monthly basis, consumer prices rose by 0.7% in September, up from 0.2% in August.

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.