Dominican Republic: Inflation accelerates notably in January
February 9, 2017
In January, consumer prices rose 0.62% from the previous month, which followed the 0.90% increase observed in December. According to the Central Bank, the increase mainly reflected higher prices for food and non-alcoholic beverages, transport and housing.
Inflation in January came in at 2.3%, markedly up from December’s 1.7% reading and marking a one-year high. However, the rate is still well below the Central Bank’s 3.0%-5.0% target range. Annual average inflation in January matched December’s 1.6% reading.
At its meeting on 31 January, 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 strong performance of the economy in 2016.