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 prices continued to fall, by 2.4%, in 2010, largely owing to a continued dip in rental prices. Consumer prices are forecast to begin to rise again this year, by an average of 4.2%, as demand from the ongoing influx of immigrants and an expansionary budget, a well as rising international commodity prices, outweigh any further declines in rents. Ongoing volatility of the dollar will influence short-term imported inflation. We expect inflation to average 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.