Country Report Myanmar January 2011

Outlook for 2011-12: Inflation

Consumer price inflation is accelerating and is estimated at an average of 8.5% in 2010, owing mainly to high food prices. Supply-side price pressures will remain strong in the forecast period. In addition, the central bank is set to continue to finance the government's budget deficit by printing money, and the consequent growth in domestic credit will push up prices. In 2011-12 annual inflation will rise to double digits, averaging 12.4%.

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