Country Report Madagascar June 2011

Outlook for 2011-12: Inflation

In 2011 the outlook for sharp rises in global commodity prices, combined with lower local agricultural output owing to drought, means that prices are set to rise at an even faster rate of 12.8%. The inflation rate should ease to 6.3% in 2012, in line with world commodity prices and assuming a return to normal local agricultural output from recent lows.

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