FX.co ★ Bahrain Inflation Rate Rises to 16-Month High

In November 2025, the annual inflation rate rose to 1.1%, up from a modest 0.1% in October. This increase marks the highest inflation level since July 2024. Prices surged significantly in key sectors like electricity, gas, and other fuels, which jumped to 9.6% from a previous decline of 1.1% in October. Recreation and culture also saw a reversal, rising to 0.5% from a decrease of 0.9%. Additionally, costs continued to climb in the transport sector, increasing to 4.2% from 2.3%, and in restaurants and hotels, which rose to 4.8% from 2.2%.

On the other hand, the inflation rate held steady in both the education and health sectors, remaining at 2.8% and 0.8%, respectively. A notable easing of deflation occurred in several areas: food and non-alcoholic beverages improved to -0.2% from -1.5%; alcoholic beverages and tobacco to -0.1% from -0.7%; housing and utilities to -0.9% from -1.6%; and furnishings, household equipment, and routine maintenance to -2% from -2.2%. However, price growth decelerated in miscellaneous goods and services, recording a tempered increase of 3.5% from 4%. The clothing and footwear sector continued its downward trend, with prices decreasing by 3.4%, slightly more than the previous month's fall of 2.9%.

On a monthly basis, consumer prices rose by 0.6% in November, following a stagnant reading in October.