Dominican Republic: Inflation moves back to target range in November
December 11, 2019
Consumer prices rose 0.37% in November over the prior month, down from October’s 0.67% increase. November’s reading was chiefly driven by higher prices for food, beverages, tobacco and housing.
Inflation rose from 2.5% in October to 3.2% in November, moving back to the Central Bank’s 3.0%-5.0% target range for the first time since October 2018. The uptick in inflation in recent months can likely be linked to monetary easing earlier in 2019. Core inflation—which excludes volatile items such as certain types of food, fuel and administered prices—ticked down from 2.2% in October to 2.0% in November.
Inflation is seen remaining in the target range in 2020, supported by solid economic growth and a weaker peso.
Author: Oliver Reynolds, Economist