FX.co ★ Bahrain Consumer Deflation Deepens in July

Consumer prices in Bahrain experienced a year-on-year decrease of 0.9% in July 2025, following a 0.4% reduction in June. This marked the fourth consecutive month of deflation, primarily driven by a more significant drop in prices for food and non-alcoholic beverages, which declined by 6.2%, compared to a 3.6% decrease in June. Additional downward pressure resulted from continued deflation in the sectors of housing and utilities (decreasing to -2% from -1.5%) and clothing and footwear (falling to -5% from -1.7%). Conversely, inflation rates increased in the areas of transport (rising to 1.8% from 1%), health (increasing to 5.4% from 5.1%), and recreational and cultural services (up to 1.8% from 0.7%). On a month-to-month basis, consumer prices dropped by 0.4%, reversing a 0.9% increase in June, which had been the most substantial monthly climb since June 2023.