Dominican Republic: Inflation increases in August
September 9, 2021
Consumer prices rose 0.80% in August over the previous month, accelerating from the 0.54% increase logged in July. The print reflected higher prices for food and non-alcoholic beverages, and transportation.
Inflation stayed steady at 7.9% in August, remaining above the Central Bank’s target range of 3.0%–5.0% for the 10th straight month. Meanwhile, the trend pointed up, with annual average inflation coming in at 7.3% in August (July: 7.1%).
Looking ahead, inflation should continue to move back towards the target range, thanks to a more favorable base effect, the recent pullback in prices for some key agricultural commodities, and government measures such as a fuel price freeze, a cut in prices for certain industrial components and DOP 2 billion in credit for importers of staple food goods.