Bahrain’s annual inflation rate accelerated to 1.1% in March 2026, up from 0.5% in February, largely reflecting a rebound in food and non-alcoholic beverage prices (2.8% vs -2.7% in February). Price pressures also increased in the transport sector (8.7% vs 6.8%), while inflation in education remained unchanged at 2.8%.
At the same time, deflation moderated in furnishings, household equipment, and routine household maintenance (-2.2% vs -2.6%). By contrast, price growth slowed in miscellaneous goods and services (5% vs 6%), and prices declined in health (-0.3% vs 0.3%) and restaurants and hotels (-0.4% vs 0.9%).
Deflation persisted across several categories, including alcoholic beverages and tobacco (-1.3% vs -0.9%), clothing and footwear (-10.1% vs -7.7%), housing and utilities (-2% vs -1%), and recreation and culture (-18% vs -12.3%), while deflation in communication was steady at -1.3%.
On a monthly basis, consumer prices rose 0.4% in March, after a 0.5% decline in February.
