Country Report Syria February 2011

Outlook for 2011-12: Inflation

Consumer price inflation rose unexpectedly to 6.9% at end-2010, driven by a rise in food and beverage prices, which make up over 40% of the overall index. It is expected to accelerate to an average of 7.2% in 2011, as global commodity prices, particularly of foodstuffs, soar. Average inflation will then ease to 2.4% in 2012, owing to a stabilisation or small decline in the number of Iraqi nationals in Syria, falling commodity prices and a helpful base effect.

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