Inflation is falling rapidly in the region as a result of the economic recession, and global food prices have dropped. In February inflation in Bahrain was 4.7 per cent.

Food and beverage prices were up 8.7 per cent compared to June 2008, and housing costs have risen 2.7 per cent. Compared to the previous month, the overall consumer price index has risen 0.2 per cent.

The Central Bank of the UAE said in early June that inflation in the UAE had fallen to 2.7 per cent between January and April.