Theoretically, Brunei is subject to imported inflationary pressures, not least because it depends on imports for a large proportion of its food needs. However, in practice the sultanate has managed to keep inflation low. This is partly because of the success of the currency peg, which links monetary policy to the well-managed Singaporean economy, but is also because Brunei has the wherewithal to subsidise a range of prices, limiting the impact of import prices on domestic inflation. Consumer price inflation is thus forecast to remain within the range of 1-2% a year in 2011-12.