On an annual average basis, consumer price inflation accelerated to 5.1% in 2010, up from 4.8% in 2009, a nine-year low, as domestic prices responded to an increase in international oil and non-oil commodity prices. BI's decision to keep interest rates low in order to stimulate lending will add to inflationary pressures in 2011 as economic activity starts to push against capacity limits in the local economy. As a result, inflation will accelerate to 6.7% in 2011, above BI's 4-6% target range. Further increases in international commodity prices will also contribute to inflationary pressures this year, although the rupiah's continued appreciation against the US dollar will restrict imported inflation, as imported goods and services will cost less in local-currency terms. The rate of inflation will then slow slightly, to an average of 6.3% a year in 2012-15. The primary risk to our forecast comes from the possibility that high international oil prices could force the government to raise administered fuel prices to keep the budget deficit under control.