Dominican Republic: Inflation eases in February
March 10, 2016
In February, consumer prices fell 0.56% over the previous month, which followed the 0.01% decrease observed in January. According to the Central Bank, the decrease mainly reflected lower prices for clothing and footwear as well as for transport.
Inflation eased from 2.5% in January to 1.7% in February, which marked the lowest reading in three months. Annual average inflation was stable in February at January’s 1.0%. Headline inflation remains below the lower bound of the Central Bank’s tolerance margin of plus/minus 1.0 percentage point around its 4.0% target rate.
At its meeting on 29 February, the Central Bank decided to maintain its monetary policy rate at 5.00%, taking into consideration the inflation outlook as well as the current state of the economy.
Author: Dirina Mançellari, Senior Economist