Bahrain’s annual inflation rate rose to 3.0% in July 2026 from 2.3% in each of the previous two months, reaching its highest level since December 2022. Food and non-alcoholic beverage prices accelerated, while costs rebounded in recreation and culture and in restaurants and hotels. Deflation eased in clothing and footwear, housing and utilities, and health. Transport inflation remained high but moderated, as did inflation in miscellaneous goods and services. Prices declined further for alcoholic beverages and tobacco, furnishings and household equipment, and communication. Education prices were unchanged at 2.8%. Consumer prices rose 0.3% month on month in July, down from 0.9% in June.