Food prices make up a relatively large proportion of the consumer price index basket in Taiwan, and trends in international and domestic food prices consequently have a considerable impact on the overall rate of inflation. However, in 2010, despite a rebound in commodity prices and a strong recovery in economic growth, as well as concerns about higher wheat prices, the average rate of inflation in Taiwan was just 1%. Rising global non-oil and commodity prices in 2011 will add to import inflation and will cause domestic inflation to accelerate to a still low 1.9% this year. The rate of inflation will remain around 2% throughout the forecast period. There are a number of reasons why inflation will remain low. One important factor will be the government's steady liberalisation of the economy, which will continue to increase competition, thereby helping to hold down prices. Another will be the expected appreciation of the New Taiwan dollar against the US dollar, which will help to curb imported inflation. However, there will also be inflationary influences at work. Healthy economic growth in the forecast period will reduce excess capacity in product markets, enhancing the ability of companies supplying the domestic market to raise prices. Meanwhile, healthier employment prospects will allow workers to negotiate higher wages.