FX.co ★ Bahrain Inflation Slows Sharply in December

In December 2025, Bahrain experienced a decrease in its annual inflation rate, bringing it down to 0.5% from 1.1% in November. There was a marked intensification of deflation across several sectors, notably in food and non-alcoholic beverages (-1.2% compared to -0.1%), clothing and footwear (-5.5% compared to an increase of 3.4%), utilities (-1.9% compared to -0.9%), and alcoholic beverages and tobacco (-0.5% compared to -0.1%). Additionally, prices saw a decline in the communication sector, dropping to -1.8% from -2.3%. Conversely, the inflation rate for restaurants and hotels decreased to 1.8% from 4.8%, while transport and healthcare sectors maintained their previous month's figures, at 4.2% and 0.6% respectively. On a month-to-month comparison, consumer prices fell by 0.7% in December, reversing November's increase of 0.6%.