Dominican Republic: Inflation moderates in March
April 11, 2017
In March, consumer prices in the Dominican Republic declined 0.20% from the previous month, which contrasted the 0.42% increase observed in February. According to the Central Bank, the decrease mainly reflected lower prices for food and non-alcoholic beverages and housing.
Inflation in March came in at 3.1%, slightly down from February’s 3.3% reading, which had marked a 13-month high. The rate nevertheless remained within the Central Bank’s 3.0%-5.0% target range. Annual average inflation in March came in at 1.9%, up from February’s 1.7% and marking the highest reading since May 2015.
At its meeting on 30 March, the Central Bank decided to raise its monetary policy rate to 5.75% from 5.50%, taking into consideration the latest data on inflation, market expectations and recent developments in the most important macroeconomic indicators, in particular the healthy expansion of lending activity in the first quarter of 2017.