Dominican Republic Inflation June 2021

Dominican Republic

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.

FocusEconomics panelists project inflation to end 2021 at 4.6%, which is up 0.3 percentage points from last month’s forecast, and 2022 at 4.0%.


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Dominican Republic Inflation Chart

Dominican Republic Inflation June 2021 0

Note: Annual and monthly variation of consumer price index in %.
Source: Dominican Republic Central Bank.

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