Dominican Republic: Inflation picks up but ends year below target range
January 10, 2013
In December, consumer prices rose 0.63% over the previous month, which matched the result seen in November. The print mainly reflects higher prices for alcoholic beverages and tobacco as well as for recreation and culture.
As a result, annual headline inflation rose from 3.4% in November to 3.9% in December. The reading was the highest in eight months but was more than half the 7.8% recorded at the end of 2011. In addition, inflation ended the year a notch below the Central Bank's target of 5.5% with a 1.0 percentage point tolerance margin set in the Monetary Policy Program for 2012.
Meanwhile, at its 30 December meeting, the Central Bank left the monetary policy rate unchanged at 5.00%, following a similar decision in November.
Author: Armando Ciccarelli, Head of Data Solutions