FX.co ★ Bahrain Inflation Remains at Over 3-Year High

Bahrain’s annual inflation rate was 3.0% in August 2026, unchanged from July and remaining at its highest level since December 2022. Price growth accelerated for food and non-alcoholic beverages (8.1% vs. 7.1% in July), recreation and culture (10.1% vs. 8.6%), and miscellaneous goods and services (3.2% vs. 2.4%).

At the same time, deflation eased in several categories: 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%).

In contrast, inflation slowed in transport (7.8% vs. 9.1%) and restaurants and hotels (1.1% vs. 1.5%), while prices for clothing and footwear fell at a faster pace (-9.4% vs. -8.9%). Education inflation remained stable at 2.8%, and health prices were unchanged at -0.1%.

On a monthly basis, consumer prices rose 0.2% in August, slightly below the 0.3% increase recorded in July.