Dominican Republic: Inflation increases in April
May 12, 2016
In April, consumer prices fell 0.09% over the previous month, which followed the 0.01% decrease observed in March. According to the Central Bank, the decrease mainly reflected lower prices for clothing and footwear.
Inflation inched up from 1.6% in March to 1.8% in April, which marked the highest reading in three months. Annual average inflation increased from March’s 1.1% to 1.2% in April. Headline inflation remains below the lower bound of the Central Bank’s tolerance margin of plus/minus 1.0 percentage point around its 4.0% target rate.
At its meeting on 31 May, the Central Bank decided to maintain its monetary policy rate at 5.00%, taking into consideration the inflation outlook as well as the recent developments of the most important macroeconomic indicators, chiefly the good performance in April’s monthly indicator for economic activity (IMAE, Indice Mensual de Actividad Economica).