Inflation update (December 2014) : Inflation averaged 2.7 percent in 2014

The Central Department of Statistics and Information (CDSI) has released Consumer Price Index data for December, showing a deceleration in prices to 2.4 percent year-on-year. Overall inflation for 2014 averaged 2.7 percent, down from 3.5 percent in 2013 with most components of the headline index recording a slowdown. We expect inflation to be subdued throughout 2015. External factors contribution to inflation will remain weak, particularly given a strengthening USD and the weaker prospects of global economic growth. We thus estimate an average annual inflation rate of 2.6 percent for 2015.