Country Report Gabon January 2011

Outlook for 2011-12: Inflation

A combination of base effects, a weaker currency, higher commodity-especially food-and import prices and higher wages and government spending, will see average consumer price growth return to positive territory over the forecast period after 2010's estimated deflation of 1.4% resulting from aggressive price competition from a new mobile telecoms provider. We envisage average consumer price inflation of 3.3% in 2011 and 3.2% in 2012, stemmed by cuts in the rate of value-added tax (VAT).

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