Inflation plunged to a 13-month low of 0.8% in January (December: 3.6%) as price pressures for food and beverages and transportation eased markedly. This was largely due to a statistical effect: The VAT was doubled to 10% in January last year. This year, tighter monetary policy will downwardly pressure inflation, exacerbating the impact of the base effect.
Bahrain 1-Week Deposit Rate (%, eop) Data
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| 1-Week Deposit Rate (%, eop) | 1.75 | 2.75 | 2.25 | 1.00 | 1.00 |