After slowing to 2.2% by the end of 2020, owing to a decline in domestic demand and a dip in average oil prices amid the coronavirus pandemic, inflation will accelerate to an average of 3.1% in 2021-22 as demand recovers and oil prices rise. Risks to our forecasts stem from the potential for higher oil prices and additional tax increases 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.