Inflation in Bahrain increased to 1.8 per cent in January from 1.6 per cent in December, according to the latest data from the country’s Central Informatics Organisation (CIO).

The rise in inflation has been driven by increasing food prices. Food costs rose by 0.55 per cent in January, according to the CIO.

Housing, water and electricity costs were broadly flat compared to the previous month.

Governor of the Central Bank of Bahrain, Rasheed al-Maraj, said in early January, he did not see inflation pressure returning to the Bahraini economy this year. Inflation peaked at 6.3 per cent in July 2008. It has begun to pick up in the past few months since falling to 1.1 per cent in November.