Dominican Republic: Inflation eases in November
December 15, 2014
In November, consumer prices fell 0.14% over the previous month, which followed the 0.08% decrease recorded in October. The figure marked the steepest decrease since May 2013. According to the Central Bank, the fall mainly reflected lower prices for housing as well as for transport.
Annual headline inflation fell from 2.9% in October to 2.7% in November, which marked the lowest rate in more than two years. Annual average inflation inched down from 3.3% in October to 3.2% in November, which marked the lowest rate since April 2010. As a result, inflation is below the lower boundary of Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its 4.5% target rate.
At its meeting on 30 November, the Central Bank maintained its monetary policy rate at 6.25%, which followed a similar decision in October. The Bank decided to keep its rate on hold, taking into consideration the latest economic developments in the developed economies as well as subdued inflationary pressure on the domestic front.
Author: Dirina Mançellari, Senior Economist