Dominican Republic Inflation June 2016

Dominican Republic

Dominican Republic: Inflation picks up in June

July 11, 2016

In June, consumer prices increased 0.60% over the previous month, which was up from the 0.25% rise observed in May and marked the highest reading since October 2015. According to the Central Bank, the increase mainly reflected higher prices for transport and education.

Inflation increased slightly from 1.7% in May to 1.9% in June. Annual average inflation inched up from May’s 1.4% to 1.5%. Headline inflation is well below the lower bound of the Central Bank’s tolerance margin of plus/minus 1.0 percentage point around its 4.0% target rate.

At its meeting on 30 June, the Central Bank decided to maintain its monetary policy rate at 5.00%, taking into consideration the inflation outlook as well as the recent developments of the most important macroeconomic indicators, chiefly the good performance in May’s monthly indicator for economic activity (IMAE, Índice Mensual de Actividad Económica).

FocusEconomics Consensus Forecast participants expect inflation to end 2016 at 2.5%, which is down 0.1 percentage points over last month’s projection. Panelists project inflation of 3.1% in 2017.

Author: Massimo Bassetti, Senior Economist

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Dominican Republic Inflation Chart

Dominican Republic Inflation June 2016 0

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

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