Dominican Republic: Inflation stable in February
March 13, 2014
In February, consumer prices rose 0.34% over the previous month. The increase, which was above the 0.23% rise recorded in January, was mainly due to higher prices for housing and for alcoholic beverages and tobacco. Annual headline inflation stabilized at the previous month's 2.8% in February, thereby holding steady at the lowest level since October 2012. Inflation remains below the Central Bank's tolerance margin of plus/minus 1.0 percentage points around its 4.5% target. The Central Bank maintained its monetary policy rate at 6.25% at its 28 February meeting, which followed a similar decision in January. The Bank's decision to maintain the rate reflects declining inflation and healthy domestic growth. FocusEconomics Consensus Forecast participants expect inflation to end the year at 4.7%, which is unchanged over last month's projection. For 2015, panelists project that inflation will moderate to 4.3%.