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Bahrain CPI inflation -0.1% y-o-y in Jul-23

- Bahrain's CPI inflation contracted by -0.1% year-on-year in July 2023, marking the lowest growth rate since May 2023 and down from the 0.4% rise in the previous period.
- This deflationary trend deviates significantly from both the one-year average and the long-run average, highlighting the need for policymakers to address the underlying factors driving the negative inflation rate.

Oil: On the Other Hand…

• A 15% increase in the price of Brent since early July re-energised the oil bulls. However, forces continue pulling in both directions, suggesting that a price in the US$80-90pb range at year-end is still more likely than USD100.

By Alastair Newton

Bahrain CPI inflation 0.4% y-o-y in Jun-23

- Bahrain's CPI inflation increased by 0.4% year-on-year in June 2023, showing improvement from the previous month's decline.
- The June 2023 CPI inflation falls 1.69 percentage points below the one-year average and 1.27 percentage points below the long-run average, signaling relatively subdued inflationary pressures.

Bahrain M2 money supply 4.74% y-o-y in Jun-23

- Bahrain's M2 money supply grew by 4.74% year-on-year in June 2023, marking the lowest growth rate since December 2022 and a decrease from the previous period.
- Private sector loans in Bahrain increased by 4.25% year-on-year in May 2023, indicating moderate lending activity in the economy.