Suspension of tourism, depressed activity, price controls on essential food items, and additional subsidies on utility bills contributed to a deflationary environment in 2020. In 2021, however, we expect the consumer price index (CPI) to record year-on-year gains, averaging 1.5% on the back of a rebound in economic growth and a gradual return of tourists to the islands. We expect a mild recovery in global oil prices in 2021-22, which will also exert an upward influence on consumer prices.