Bahrain Inflation Hits Over 1-Year High

Bahrain’s annual inflation rose to 1.3% in January 2026, accelerating from 0.5% in the previous month and marking its highest level since June 2024. Prices rebounded in recreation and culture (4.5% vs -0.8% in December), while costs continued to increase for transport (6.5% vs 4.2%), restaurants and hotels (3.9% vs 1.8%), miscellaneous goods and services (6% vs 4%), and health (0.7% vs 0.6%). In addition, education costs remained steady at 2.8%, and deflation eased in housing and utilities (-1.3% vs -1.9%), and communication (-1.5% vs -1.8%). Conversely, deflation persisted in food and non-alcoholic beverages (-2.9% vs -1.2%), and clothing and footwear (-5.7% vs -5.5%). On a monthly basis, consumer prices rose 0.9% in January, rebounding from a 0.7% increase in December.