FX.co ★ Bahrain Inflation Rises to Near 2-Year High

Bahrain’s annual inflation rate rose to 1.4% in April 2026, up from 1.1% in March, reaching its highest level since June 2024. The increase was driven mainly by faster price growth in transport (10.0% vs 8.7% in March) and a strong rebound in recreation and culture (3.4% vs -18.0%). At the same time, deflation moderated in several categories, including 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%).

In contrast, prices for food and non-alcoholic beverages fell (-0.1% vs a 2.8% increase previously). Deflation also continued 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 (unchanged at -2.2%). Price growth eased in miscellaneous goods and services as well (4.1% vs 5.0%). On a monthly basis, consumer prices were flat in April, after a 0.4% increase in March.