Dominican Republic: Inflation accelerates notably in February
March 9, 2017
In February, Dominican consumer prices rose 0.42% from the previous month, which followed the 0.62% increase observed in January. According to the Central Bank, the increase mainly reflected higher prices for food and non-alcoholic beverages, transport and housing.
Inflation in February came in at 3.3%, markedly up from January’s 2.3% reading and marking a 13-month high. The rate thus moved into the Central Bank’s 3.0%-5.0% target range. Annual average inflation in February came in at 1.7%, marginally up from January’s 1.6% reading.
At its meeting on 28 February, 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, in particular the healthy expansion of lending activity in February.