Bahrain Inflation Hits 16-Month High on Energy and Transport Costs

Manama | EcoPulse24

Bahrain’s annual inflation rate climbed to 1.1% in November 2025, up from 0.1% in October and marking the highest reading since July 2024. The rise reflects renewed price pressures in several key components of the consumer basket.

The increase was primarily fueled by a rebound in electricity, gas, and fuel prices, which surged 9.6% after dropping -1.1% the previous month. Entertainment and culture prices also improved by 0.5%, compared to a -0.9% decline in October. Transport inflation accelerated to 4.2% (from 2.3%), and the restaurants and hotels sector rose to 4.8% (from 2.2%), contributing to the overall inflation uptick.

In contrast, prices remained steady in education (2.8%) and health (0.8%). Deflation moderated in several categories, notably food and non-alcoholic beverages at -0.2% (from -1.5%), alcoholic beverages and tobacco at -0.1% (from -0.7%), housing and utilities at -0.9% (from -1.6%), and furnishings and household equipment at -2.0% (from -2.2%).

Meanwhile, price growth in miscellaneous goods and services slowed to 3.5% (from 4.0%), while clothing and footwear continued to decline at -3.4% (versus -2.9% previously).

On a monthly basis, consumer prices increased by 0.6% in November, following a flat reading in October, indicating short-term momentum driven by seasonal factors and rises in energy and services components.

This development signals a gradual shift in price dynamics within Bahrain’s economy. While inflation remains moderate overall, clear sectoral disparities persist, underscoring the importance of closely monitoring energy and transport trends and their effects on purchasing power.