Dominican Republic: Inflation falls to lowest level in 13 months
August 15, 2014
In July, consumer prices rose a timid 0.36% over the previous month, which was up from the virtually flat reading recorded in June. According to the Central Bank, the increase mainly reflected higher prices for food and non-alcoholic beverages, alcoholic beverages as well as for transport.
Annual headline inflation fell from June’s 3.7% to 3.4% in July, which recorded the lowest rate in four months. As a result, inflation is now below Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its 4.5% target rate.
At its meeting on 31 July, the Central Bank maintained its monetary policy rate at 6.25%, which followed a similar decision in June. The Bank decided to keep its rate on hold, taking in consideration that growth in the developed economies is gradually improving and that domestic inflationary pressures are subdued.
Author: Dirina Mançellari, Senior Economist