Dominican Republic: Inflation stable in June
July 14, 2014
In June, consumer prices rose a timid 0.02% over the previous month, which mirrored the result recorded in May. The figure remains at the level that has been recorded since November 2013. According to the Central Bank, the increase mainly reflected higher prices for transport as well as for furniture, which offset lower prices for food and non-alcoholic beverages as well as for housing.
Annual headline inflation was also stable at May’s 3.7% in June and remained at the highest level that has been recorded this year. Inflation is still within Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its 4.5% target rate.
At its meeting on 30 June, the Central Bank maintained its monetary policy rate at 6.25%, which followed a similar decision in May. The Bank decided to keep its rate on hold taking in consideration that growth in the developed economies is gradually improving and that domestic inflationary pressures are subdued.
Author: Dirina Mançellari, Senior Economist