Inflation in Dominican Republic
Dominican Republic - Inflation
Inflation holds stable in October
Consumer prices increased 0.64% in October over the previous month, picking up from the 0.45% increase recorded in September. The higher reading largely owed itself to higher transport prices amid higher oil prices.
Inflation came in at 7.7% in October, unchanged from September’s reading. October's reading represented the lowest inflation rate since February, but was still well above the Central Bank’s 3.0%–5.0% target range. Annual average inflation rose to 7.8% in October (September: 7.5%). Lastly, core inflation ticked up to 6.3% in October, from the previous month's 6.1%.
Analysts at JPMorgan are more bullish about inflation prospects:
“Part of the slowdown in September came on the back of a drop in food and beverages, which had been under significant pressure in past months, something BCRD has referred to as a driver of above-trend inflation. However, the underlying trend continues to show signs of pressure, with core prices rising 0.51% in month-on-month seasonally-adjusted terms […] While part of the rapid gains can be attributed to knock-on effects from high commodity prices, or supply disruptions, gains in other components such as restaurant and hotel prices are clearly linked to the economic recovery. Our forecast for headline inflation to reach 7.2% year-on-year by year-end seems on track, but core inflation pressures remain a source of upside from a more medium-term perspective.”
FocusEconomics panelists project inflation to end 2022 at 4.5%, which is unchanged from last month’s forecast, and 2023 at 4.0%.
Dominican Republic - Inflation Data
|Inflation Rate (CPI, annual variation in %)||0.8||1.6||3.3||3.6||1.8|
5 years of economic forecasts for more than 30 economic indicators.
Dominican Republic Inflation Chart
Source: Dominican Republic Central Bank and FocusEconomics calculations
Dominican Republic Facts
|Exchange Rate||52.96||0.80 %||Jan 01|
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November 12, 2021
Consumer prices increased 0.64% in October over the previous month, picking up from the 0.45% increase recorded in September.
October 29, 2021
At its end-October meeting, the Central Bank of the Dominican Republic (BCRD) decided to keep the policy rate at 3.00%.
Dominican Republic: Economic activity records slowest growth since February in September but remains robust
October 22, 2021
Economic activity expanded 10.6% in year-on-year terms in September, which was a deterioration from August's 11.7% increase.
October 14, 2021
Consumer prices rose 0.45% in September over the previous month, which was below the 0.80% increase logged in August.
Dominican Republic: Economic activity records lowest expansion since March in August but remains strong
October 3, 2021
Economic activity expanded 11.7% in year-on-year terms in August, which followed July's 12.1% increase.