Dominican Republic: Inflation comes in at highest level since June 2021 in January
Consumer prices rose 1.18% from the previous month in January, after the 0.73% rise logged in December. January’s uptick marked the highest reading since July 2020.
Looking at a breakdown of the reading, rising price pressures for housing, food, and transport explained 75% of January’s higher print. This comes amid the government’s decision to raise electricity prices due to soaring fuel prices.
Inflation inched up to 8.7% in January, following December’s 8.5%. January’s result represented the highest inflation rate since June 2021. Meanwhile, the trend pointed up, with annual average inflation coming in at 8.5% in January (December: 8.2%). Finally, core inflation rose to 7.0% in January, from December’s 6.9%.
Inflation should ease in 2022 as supply constraints ease, energy prices moderate, and the country recovers from its recent swine fever outbreak, bringing down domestic food price pressures.