Dominican Republic: Inflation hits 15-month low in January
February 10, 2014
In January, consumer prices rose 0.23% over the previous month. The increase, which was below the 0.37% rise recorded in December, was mainly due to higher prices for recreation and culture and for housing.
Annual headline inflation fell from 3.9% in December to 2.8% in January, which is the lowest level of inflation that has been recorded since October 2012. Inflation is now well 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 30 January meeting, which followed a similar decision in December. The Bank's decision to maintain the rate 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%.