Asian Development Outlook 2009 Update: Democratic Republic of Timor-Leste
Inflation has subsided at a much faster rate than forecast in ADO 2009, driven by sharp falls in international prices of food and fuel. (The use of the US dollar as the national currency has helped in this regard.) The consumer price index fell by 1.3% on a year-on-year basis in the second quarter of 2009. For the full year, inflation is now forecast at 1.5%, revised down sharply from ADO 2009, and for 2010 the forecast is lowered to 3.1%.