Consumer prices in Bahrain fell by 0.8% year-on-year in August 2025, following a 0.9% decline in July. This marked the fifth consecutive month of deflation, driven primarily by a smaller drop in prices for food and non-alcoholic beverages, which fell 3.7% compared to a 6.2% decline in the previous month. Additional downward pressure came from continued deflation in housing and utilities (-1.6% vs. -2%) and clothing and footwear (-5.3% vs. -5%). Prices for recreational and cultural services also fell by 1.3%, reversing a 1.8% rise in July. Meanwhile, transport prices remained flat after a 1.8% increase in July, and health prices moderated slightly (5.3% vs. 5.4%). On a monthly basis, consumer prices rose 0.2%, rebounding from a 0.4% drop in the previous month.
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