Dominican Republic: Inflation inches up in October
November 10, 2014
In October, consumer prices fell 0.08% over the previous month, which contrasted the 0.19% increase recorded in September. The figure marked the steepest decrease in a year. According to the Central Bank, the decrease mainly reflected lower prices for clothing and footwear as well as for transport.
Annual headline inflation inched up from 2.8% in September to 2.9% in October. Annual average inflation edged down from 3.5% in September to 3.3% in October, which marked the lowest rate since April 2010. As a result, inflation is below the lower bound of Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its 4.5% target rate.
At its meeting on 31 October, the Central Bank maintained its monetary policy rate at 6.25%, which followed a similar decision in September. 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