After it remained steady in 2010, we expect inflation to increase in 2011, before moderating in 2012. World oil prices-a large factor in previous Liberian inflationary surges-will increase in 2011, and global food prices, the other main determinant, are expected to rise at an even faster rate. IMF support will help to contain further downward pressure on the currency and, aided by the high level of dollarisation in the country, this will help to restrain inflationary pressures. However, supply bottlenecks owing to poor transport infrastructure will remain structural sources of inflationary pressure. We expect inflation to average 10% in 2011 before falling oil and food prices lower this to 7% in 2012.