Dominican Republic Inflation

Dominican Republic

Dominican Republic: Inflation moderates in August but Central Bank hikes rate

September 9, 2013

In August, consumer prices jumped 0.66% over the previous month, according to preliminary Central Bank data. The reading came in slightly above the 0.62% increase seen in July and marks the highest rise since the beginning of the year.

Annual headline inflation fell from 5.7% in July to 5.3% in August. Inflation is currently within the Central Bank's tolerance margin of plus/minus 1.0 percentage points around its 5.0% target.

Meanwhile, the Central Bank increased the monetary policy rate a substantial 200 basis points to 6.25% at its 28 August meeting. The Central Bank decided to increase its monetary policy rate to support a weakening currency and to withstand inflationary pressures.

FocusEconomics Consensus Forecast participants expect inflation to end the year at 4.9%, which is up 0.1 percentage points over last month's projection. By the end of 2014, panelists expect inflation to moderate to 4.4%.


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Dominican Republic Inflation Chart

Dominican Republic Inflation August 2013

Note: Annual and monthly variation of consumer price index in %.
Source: Dominican Republic Central Bank.

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