- Transport inflation accelerated to 11.6% y/y from 7.8% in August, as prices rose by 2.8% m/m
- Food inflation eased marginally to 8.0% y/y from 8.1%, although food prices increased by a further 1.4% m/m
- Consumer prices rose by 0.7% m/m after a 0.2% increase in August, marking the strongest monthly rise since the recent acceleration began
Bahrain’s CPI inflation accelerated to 3.1% y/y in September from 3.0% in August, reaching its highest level since December 2022, according to data published by the Information & eGovernment Authority. Consumer prices rose by 0.7% m/m, following a 0.2% increase in August, and the headline index reached 104.9 points. The acceleration was driven mainly by transport costs, while food-price inflation remained elevated despite easing slightly in annual terms.
Transport inflation accelerated to 11.6% y/y from 7.8% in August, with prices increasing by 2.8% m/m after declining by 0.5% in the previous month. Food and non-alcoholic beverage inflation eased to 8.0% y/y from 8.1%, but prices rose by a further 1.4% m/m. Recreation and culture inflation slowed sharply to 2.9% y/y from 10.1%, while restaurants and hotels inflation moderated to 0.8% from 1.1%. Alcoholic beverages and tobacco prices rose by 3.4% y/y after declining in August, while furnishings inflation turned positive at 0.9% from -1.4% and communication prices returned to marginal growth. These pressures were partly offset by continued deflation in clothing and footwear, where prices fell by 9.1% y/y, and in housing and utilities, where prices declined by 1.3%.
Overall, the September figures point to a transport-led acceleration rather than a broad-based increase across all consumer categories. Persistent food-price growth and the stronger monthly headline increase nevertheless suggest that household cost pressures strengthened in the third quarter. CPI inflation remained well above the 1.5% y/y average recorded in H1 2026 and the 0.1% average annual decline in consumer prices in 2025. Whether inflation remains above 3% will depend primarily on transport costs and whether food-price pressures ease in the final quarter of the year.