Bahrain: cost of living

Are food prices rising in Bahrain?

Food and non-alcoholic drink prices in Bahrain were 8.1% higher in August 2026 than a year earlier, according to the Information & eGovernment Authority, up from 7.1% in July and 5.8% in June. Overall consumer prices rose 3.0% over the year to August.

The index measures price changes for a fixed basket of goods and services. It does not show price levels, so it cannot compare the cost of living in Bahrain with other countries. Restaurant and hotel prices are counted separately and rose 1.1%.

Official sources: Bahrain Open Data: CPI percentage change from same month of previous year

What was inflation in Bahrain in 2025?

Consumer prices in Bahrain fell 0.1% on average in 2025, after rising 0.9% in 2024, according to the Information & eGovernment Authority's yearly consumer price index on the Bahrain Open Data Portal. Food prices fell 2.9% and housing and utilities 1.8%, while health rose 3.8% and transport 2.6%.

These are changes in the yearly average index. Monthly figures for 2026 show prices rising again, with the index 3.0% higher in August 2026 than a year earlier.

Official sources: Bahrain Open Data Portal: CPI yearly percentage change · Bahrain Open Data Portal: CPI change from previous year

Are rents rising in Bahrain?

Actual rents paid for housing in Bahrain fell 2.2% on average in 2025, according to the Information & eGovernment Authority's yearly consumer price index on the Bahrain Open Data Portal. Imputed rents, an estimate of the housing cost for owner-occupiers, fell 1.8%.

The rent index tracks rents for the same kinds of homes over time, so it shows price change rather than average rent levels. The 2020 census counted 142,327 vacant housing units, 36.8% of the housing stock.

Official sources: Bahrain Open Data Portal: CPI yearly percentage change · Bahrain Open Data Portal: housing units by type and occupancy, census 2020

What is the VAT rate in Bahrain?

The standard rate of value added tax in Bahrain is 10%, in force since 1 January 2022, according to the National Bureau for Revenue's VAT questions and answers. VAT was introduced on 1 January 2019 at 5%.

Some goods and services are zero-rated or exempt under the VAT law, so not every purchase carries the full 10%. Excise tax applies separately to goods such as tobacco and soft drinks. The bureau's statistics page shows 27,865 VAT-registered businesses up to the second quarter of 2026.

Official sources: National Bureau for Revenue: VAT FAQs · National Bureau for Revenue: statistics

How fast are prices rising in Bahrain?

-0.1%: that is consumer price inflation in Bahrain for 2025, according to the IMF. Since 2005 it has ranged from -2.3% (2020) to 3.6% (2022). It is 17th highest of 18 in Middle East, North Africa, Afghanistan & Pakistan, where the median is 1.9%. World rank, highest first: 156th of 165.

How much do people in Bahrain spend?

According to the World Bank, household consumption per person in Bahrain was $11,566 in 2024. Since 2005 it has ranged from $7,636 (2007) to $11,902 (2013). Across Middle East, North Africa, Afghanistan & Pakistan the middle value was $3,237, and Bahrain placed 4th highest of 16. Of 153 countries with 2024 data, 33rd highest.