24.06.202610:13:32UTC+00Bahrain Inflation Hits 2-Year High

Bahrain’s annual inflation rate accelerated to 2.3% in May 2026 from 1.4% in April, reaching its highest level since May 2024. The uptick was mainly driven by a sharp rebound in prices for food and non-alcoholic beverages (up 5.7% vs down 0.1% in April) and a return to positive inflation in restaurants and hotels (0.2% vs -0.3%). Inflation also remained elevated in transport (10.4% vs 10.0%) and was stable in education (2.8%).

At the same time, deflation eased in several categories, including clothing and footwear (-12.7% vs -14.0%), communication (-0.2% vs -0.8%), and furnishings, household equipment, and routine household maintenance (-1.3% vs -2.2%). By contrast, price pressures softened in recreation and culture (0.3% vs 3.4%) and in miscellaneous goods and services (3.4% vs 4.1%).

Further price declines were recorded for alcoholic beverages and tobacco (-1.3% vs -0.2%), housing and utilities (-2.2% vs -2.1%), and health (-0.2% vs -0.1%). On a monthly basis, consumer prices rose 0.4% in May, following a flat reading in April.