Dominican Republic: Inflation increases in March
April 7, 2014
In March, consumer prices rose 0.52% over the previous month, which marked the highest rate since August 2013 and was above the 0.34% rise recorded in February. According to the Central Bank, the increase mainly reflected higher prices for food and non-alcoholic beverages as well as for transportation. Annual headline inflation rose from 2.8% in February to 3.0% in March and marked the highest rate so far this year. Inflation remains below the Central Bank's tolerance margin of plus/minus 1.0 percentage points around its 4.5% target rate. The Central Bank maintained its monetary policy rate at 6.25% at its 31 March meeting, which followed a similar decision in February. The Bank's decision to maintain the rate reflects subdued inflationary pressures 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. Panelists project that inflation will moderate to 4.3% in 2015.