Dominican Republic: Inflation stabilizes in September
October 13, 2015
In September, consumer prices rose 0.16% over the previous month, which followed the 0.32% increase observed in August. According to the Central Bank, the increase mainly reflected higher prices for transportation and housing.
Inflation was stable at August’s 0.4%, thus remaining at a three-month low. Annual average inflation edged down from 1.2% in August to 1.0% in September and now sits at its lowest rate on record. As a result, headline inflation remains 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 September, the Central Bank decided to maintain its monetary policy rate at 5.00%, taking into consideration the inflation outlook as well as the current state of the economy.
Author: Dirina Mançellari, Senior Economist