Country Report Lebanon January 2011

Outlook for 2011-12: Inflation

After a sharp drop in 2009, because of lower world commodity prices, inflation picked up slightly in 2010 to an estimated average of 3.9%. In 2011-12 inflation is expected to fall to an annual average of 3.6% as a weakening euro has a deflationary impact on import prices. (France, Italy and Germany together provide one-quarter of imports.) There are serious questions about the reliability of data from the Central Administration of Statistics.

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