Dominican Republic: Inflation rebounds in June
July 16, 2020
Consumer prices rose 1.70% over the prior month in June, contrasting May’s 0.11% fall. June’s reading was driven by significantly higher food and transport prices.
Inflation rose from 1.0% in May to 2.9% in June, moving closer to the Bank’s 3.0%–5.0% target range. The increase was driven in large part by the recovery in international oil prices. Core inflation—which excludes volatile items such as certain types of food, fuel and administered prices—was up from 3.1% to 3.5%, likely supported by monetary stimulus.
Looking ahead, our panelists see inflation ending the year below target, amid weak economic momentum and as oil prices are expected to stall.