A period of high inflation came to an abrupt end in 2009, when deflation averaged 4.9%, mainly because of a fall in rents and global commodity prices, and we estimate that prices fell by 1.9% in 2010, largely owing to a continued dip in rental prices. Consumer prices will begin to rise again this year, as demand from the ongoing influx of immigrants outweighs any further declines in rents, and inflation is forecast to average 2.1%. Ongoing volatility of the dollar will influence short-term imported inflation. We expect inflation to average 4.4% in 2012-15, close to Qatar's long-run average, boosted by continued strong domestic demand. There are both downside and upside risks to the forecast, depending on the level of immigration and the outlook for the dollar.