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Bahrain’s annual inflation rose to 2.3 percent in October following the removal of a decision by the government to remove meat subsidies as it tries to save money amid continuing low oil prices.

Last month, Bahrain more than doubled prices of beef and chicken as it removed meat subsidies. Local citizens but not foreigners will receive some compensation in the form of cash handouts.

In April, the government raised the price of natural gas sold to industry.

Housing and utility costs, which account for 24 percent of consumer expenses, rose 3.1 percent in October from a year earlier, according to Bahrain’s statistics office.

Prices of food and non-alcoholic beverages, which account for 16 percent of the basket, jumped 8.9 percent after the removal of meat subsidies.

Last week, Bahrain’s minister for industry and commerce said the Gulf kingdom is planning more subsidy cuts and intends to impose charges for government services next year.

Like other Gulf oil-exporting states, Bahrain has for many years subsidised goods and services such as food, fuel, electricity and water, keeping prices ultra-low in an effort to maintain social peace.

But since its oil income began to plunge last year, the government’s budget deficit has widened and the subsidies have become much harder for Bahrain to afford.

Governments around the Gulf have begun restraining expenditure and studying whether to cut subsidies, but most do not face as much pressure as Bahrain, which lacks the huge financial reserves of its neighbours. Bahrain’s revenues have dropped 60-70 percent because of low oil prices.