Dominican Republic: Inflation reaches lowest level in eight months
September 10, 2014
In September, consumer prices rose 0.19% over the previous month, which was down from the 0.39% increase recorded in August. The figure marked the lowest increase in three months. According to the Central Bank, the increase mainly reflected higher prices for food and non-alcoholic beverages as well as for alcoholic beverages, which offset lower prices for transport and housing.
Annual headline inflation fell from 3.1% in August to 2.8% in September, thus reaching the lowest rate in eight months. Annual average inflation inched down from 3.7% in August to 3.5% in September, which marked the lowest rate since March 2013. As a result, inflation is on the lower bound of Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its 4.5% target rate.
At its meeting on 30 September, the Central Bank maintained its monetary policy rate at 6.25%, which followed a similar decision in August. The Bank decided to keep its rate on hold, taking into consideration the latest economic developments in the developed economies as well as subdued inflationary pressure on the domestic front.
Author: Dirina Mançellari, Senior Economist