Dominican Republic: Inflation drops to lowest level in more than two years
April 13, 2012
In March, consumer prices added 0.15% over the previous month, which was below the 0.35% rise seen in February. Higher prices for alcoholic beverages and tobacco as well as for transport were the main drivers of the monthly increase. Meanwhile, annual headline inflation dropped from 6.0% in February to 4.9% in March, which marks the lowest level since November 2009. At the current level, inflation sits within the 4.5%-6.5% inflation target set by the Central Bank in its Monetary Policy Program for 2012. Building on the favourable inflation scenario, the Central Bank kept the monetary policy rate unchanged at 6.75% at its 30 March meeting. The Bank has now refrained from raising interest rates for ten straight months, after two consecutive hikes in May and June 2011.
Author: Armando Ciccarelli, Head of Data Solutions