This report presents a descriptive analysis of the recent inflation developments in the OPT with the emphasis on the fourth quarter of 2011. It also provides inflation forecasts for the next four quarters starting from the first quarter of 2012. PMA publishes this report on a quarterly basis to serve decision makers, the business sector, the public, and PMA needs regarding future monetary policy design.In addition to the inflation analysis and forecasts, this report provides an overview of the recent economic and financial developments locally and globally as well as exchange rates developments.