Dominican Republic Inflation

Dominican Republic

Dominican Republic: Inflation reaches five-month high

June 8, 2014

In May, consumer prices rose a meager 0.02% over the previous month, which was well below the 0.43% rise recorded in April. The figure marked the lowest monthly increase in seven months. According to the Central Bank, the increase mainly reflected higher prices for transport as well as for healthcare, which offset lower prices for food and non-alcoholic beverages as well as for housing.

Annual headline inflation rose from 3.5% in April to 3.7% in May and marked the highest rate in five months. Inflation is still within Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its 4.5% target rate.

At its meeting on 30 May, the Central Bank maintained its monetary policy rate at 6.25%, which followed a similar decision in April. The Bank justified its decision by pointing out that growth in the developed economies is gradual and that domestic inflationary pressures are subdued.

FocusEconomics Consensus Forecast participants expect inflation to end the year at 4.7%, which is unchanged over last month’s projection. Panelists project that inflation will moderate to 4.3% in 2015.

Author:, Senior Economist

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Dominican Republic Inflation Chart

Dominican Republic Inflation May 2014

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

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