Dominican Republic: Inflation eases further in October
November 8, 2013
In October, consumer prices fell 0.14% over the previous month. The drop contrasted the 0.49% rise recorded in September and was mainly due to lower prices for transportation and for clothing and footwear.
Annual headline inflation fell from 5.1% in September to 4.7% in October. Inflation is currently within the Central Bank's tolerance margin of plus/minus 1.0 percentage points around its 5.0% target.
The Central Bank maintained its monetary policy rate at 6.25% at its 31 October, following a similar decision in October and after the substantial hike of 200 basis points in August. The Bank's decision reflects contained inflationary pressures and lower pressure on the Dominican peso after the Fed's October decision to delay tapering its bond-purchase program.
FocusEconomics Consensus Forecast participants expect inflation to end the year at 5.0%, which is up 0.1 percentage points over last month's projection. For 2014, panelists anticipate that inflation will moderate to 4.4% by year-end, which is unchanged over the previous month's estimate.
Author: Armando Ciccarelli, Head of Data Solutions