Dominican Republic: Inflation increases in June
July 10, 2015
In June, consumer prices rose 0.41% over the previous month, which followed the 0.29% increase observed in May. According to the Central Bank, the increase mainly reflected higher prices for transportation and housing.
Inflation increased from 0.2% in May to 0.6% in June, thus reaching the highest reading in three months. Annual average inflation edged down from 1.9% in May to 1.7% in June and now sits at its lowest rate since December 2009. As a result, headline inflation remains well 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 30 June, the Central Bank decided to maintain its monetary policy rate at 5.00%. Previous to this meeting, the Bank cut its monetary policy rate in three consecutive meetings, taking into consideration subdued inflationary pressures on the domestic front and the latest economic developments in the developed economies.
Author: Dirina Mançellari, Senior Economist