Dominican Republic: Inflation accelerates notably in December
January 11, 2017
In December, Dominican consumer prices rose 0.90% from the previous month, which followed the 0.13% increase observed in November. According to the Central Bank, the increase mainly reflected higher prices for housing, transport and healthcare and was the highest print since January 2013.
Inflation in December came in at 1.7%, markedly up from November’s 0.9% reading, marking a five-month high, but still staying well below the lower bound of the Central Bank’s tolerance margin of plus/minus 1.0 percentage point around its 4.0% target rate. Annual average inflation in December was 1.6%, marginally down from November’s 1.7% reading.
At its meeting on 31 December, the Central Bank decided to maintain its monetary policy rate at 5.50%, taking into consideration the latest data on inflation, market expectations and recent developments in the most important macroeconomic indicators—mainly the strong performance of economic activity in the January-to-November period.