Consumer prices in Bahrain fell by 0.9% year-on-year in July 2025, following a 0.4% decline in June. This marked the fourth consecutive month of deflation, driven primarily by a sharper drop in prices for food and non-alcoholic beverages, which fell 6.2% compared with a 3.6% decline in June. Additional downward pressure came from continued deflation in housing and utilities (-2% vs -1.5%) as well as clothing and footwear (-5% vs -1.7%). Conversely, inflation accelerated for transport (1.8% vs 1%), health (5.4% vs 5.1%), and recreational and cultural services (1.8% vs 0.7%). On a monthly basis, consumer prices fell 0.4%, reversing a 0.9% gain in June, which had been the steepest monthly increase since June 2023.