Dominican Republic: Inflation dips in February but stays within the target range
March 7, 2020
Consumer prices fell 0.13% in February over the prior month, contrasting January’s 0.33% increase. February’s reading was chiefly driven by lower housing and transport costs.
Inflation fell from 4.2% in January to 3.7% in February, but remained within the Bank’s 3.0%-5.0% target range for the fourth straight month. Core inflation—which excludes volatile items such as certain types of food, fuel and administered prices—was up from 2.4% to 2.5%.
Inflation is seen at the lower end of the target range in 2020, supported by solid economic growth. However, the recent large fall in oil prices poses a downside risk to inflation going forward.
Author: Oliver Reynolds, Economist