After slowing to an estimated annual average of 2.2% in 2020, owing to a decline in domestic demand and a forecast dip in average oil prices this year amid the coronavirus pandemic, inflation will accelerate to an average of 3% in 2021-22 as demand recovers, fuelling a rise in prices. Risks to our forecasts stem from the potential for higher oil prices and further tax measures to shore up the public finances. With much of Curaçao's consumer basket composed of imports, the country will remain vulnerable to global price trends.