Dominican Republic: Inflation hits 13-month low in December
January 15, 2014
In December, consumer prices rose 0.37% over the previous month. The increase, which was above the 0.06% rise recorded in November, was mainly due to higher prices for housing and for transport.
Annual headline inflation fell from 4.1% in November to 3.9% in December. December's print, which marks the lowest level since November 2012, matched the result tallied in December 2012. Inflation is now a tad below 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 29 December meeting, following a similar decision in November. The Bank's decision reflects declining inflation and healthy domestic growth.
FocusEconomics Consensus Forecast participants expect inflation to end the year at 4.7%, which is unchanged over last month's projection. For 2015, panelists anticipate that inflation will moderate to 4.4%.