Dominican Republic: Inflation rises in May
Consumer prices rose 0.26% in May over the previous month, down from April’s 0.40% rise. According to the Central Bank, May’s figure was driven by higher prices for transport—linked to more expensive fuel—and housing. Inflation rose from 4.1% in April to 4.5% in May, above the midpoint of the Central Bank’s inflation target range of 3.0%–5.0%.
At its 31 May monetary policy meeting, the Central Bank kept the main policy rate unchanged at 5.25%, where it has been since August 2017. The Bank justified its decision by highlighting that inflation is currently comfortably within the target range and is expected to remain so over the two-year forecast horizon. In addition, the economy is enjoying a resurgence in growth following a lull in the middle of last year, meaning that further monetary stimulus was unwarranted.