NASSAU, BAHAMAS: Rising global fuel prices, driven in part by geopolitical tensions surrounding the Iran-Israel conflict, helped push inflation in The Bahamas to its highest annual rate in months, according to the Bahamas National Statistical Institute’s latest Consumer Price Index report.
The BNSI reported that consumer prices rose 3.8 percent in April 2026 compared with the same month a year earlier, while prices increased 0.6 percent from March, marking the second consecutive month of accelerating monthly inflation.
The sharp increase was led by transportation costs, which climbed 7.5 percent month-over-month and 10.9 percent compared with April 2025. Restaurants and hotels recorded the largest annual increase at 17.4 percent, while housing, water, electricity, gas and other fuels rose 4.1 percent year-over-year.
A major factor behind the jump in transportation costs was a dramatic increase in fuel prices. The institute reported that petroleum prices rose 20.4 percent between March and April, while diesel prices increased 36.5 percent over the same period. Compared with April 2025, petroleum prices were up 41.4 percent, with diesel prices climbing 21.2 percent.
The April data reflects the period when global oil markets experienced significant volatility following the escalation of hostilities between Iran and Israel and concerns over potential disruptions to Middle East energy supplies. Although international oil prices later eased after tensions subsided, the higher fuel costs during April filtered through to transportation and other consumer prices.
Despite the broad-based increases, consumers received some relief in other categories. Food and non-alcoholic beverages declined 1.5 percent from March, while recreation prices fell 0.5 percent on a monthly basis. On an annual basis, alcoholic beverages, tobacco and narcotics decreased 4.6 percent.
