According to official data, inflation slowed to 3% (year on year) in February, down from 3.5% the previous month. However, these figures almost certainly understate the rate of price rises. Inflationary pressures are set to increase strongly in 2011 because of rising food and fuel prices and increasing wage demands (a number of 30% pay deals have been awarded-and backdated to mid-2010-in recent weeks, and a further pay review is promised in mid-2011). As a result, average inflation will rise to 5.4% in 2011 before accelerating to 9% in 2012 as the authorities boost spending in the run-up to polls. However, inflation should remain low by historical standards, provided that the government does not revert to the disastrous policies used previously, such as printing money to finance deficits.