We expect consumer price inflation to average 4.3% over the forecast period, having averaged 4% in 2010. Oman imports the majority of its food products. An expansionary fiscal policy and a rise in the prices of basic food items, such as wheat, and industrial raw materials will contribute to an increase in prices. Inflation is forecast to rise in 2011 to 4.5% but to fall to 4.1% in 2012 as prices stabilise. Inflation in the forecast period is expected to be much lower than in 2007-08, when it averaged 9.2%. However, it remains high by Omani standards. Consumer prices are constrained by the government's extensive subsidy system, which holds in check the prices of a range of core goods and services.