Dominican Republic: Inflation dips in June but remains elevated
July 7, 2021
Consumer prices rose 0.63% in June over the previous month, decelerating from the 0.65% increase logged in May amid softer price pressures for transport—likely in part due to government-stipulated fuel price freezes.
Inflation decreased from 10.5% in May to 9.3% in June, but remained above the Central Bank’s target range of 3.0%–5.0% for the eighth straight month. Meanwhile, the trend pointed up, with annual average inflation coming in at 6.8% in June (May: 6.2%). Core inflation ticked up to 6.0% in June from 5.8% in May.
To combat high inflation, the government has in recent weeks announced a series of measures, including a further fuel price freeze, a cut in prices for certain industrial components, DOP 2 billion in credit for importers of staple food goods and the rollout of government-run markets to provide food at a lower price. These measures, combined with a more favorable base effect and the recent pullback in prices for some key agricultural commodities, should see inflation dip in the second half of the year.