Dominican Republic: Inflation slows in September
October 10, 2016
In September, consumer prices increased 0.04% from the previous month, which contrasted the 0.06% decline observed in August. According to the Central Bank, the increase mainly reflected higher prices for transport and education.
Inflation in September inched down to 1.4% from August’s 1.5%, marking an 11-month low and keeping headline inflation 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. Annual average inflation inched up from August’s 1.7% to 1.8%.
At its meeting on 30 September, the Central Bank decided to maintain its monetary policy rate at 5.00%, taking into consideration the inflation outlook, market expectations and the macroeconomic framework—mainly the good performance of the IMAE (Indicador Mensual de Actividad Económica, IMAE) in the first eight months of the year and the double-digit expansion in the provision of credit to the private sector in September.