FX.co ★ Bahrain Inflation Hits Over 1-Year High

Bahrain’s annual inflation rate rose to 1.3% in January 2026, up from 0.5% in December and reaching its highest level since June 2024. Prices rebounded in the recreation and culture category (4.5% vs -0.8% in December), and continued to rise 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%). Education costs were unchanged at 2.8%, while deflation eased in housing and utilities (-1.3% vs -1.9%) and communication (-1.5% vs -1.8%). By contrast, deflation deepened in food and non-alcoholic beverages (-2.9% vs -1.2%), and in clothing and footwear (-5.7% vs -5.5%). On a monthly basis, consumer prices increased 0.9% in January, reversing a 0.7% decline in December.