Dominican Republic: Inflation inches down in February
March 14, 2013
In February, consumer prices rose 0.33% over the previous month, which was down from the 1.26% increase seen in January and marks the lowest increase in four months. Higher prices for transport and housing more than offset lower prices for food and non-alcoholic beverages.
As a result of the subdued monthly increase, annual headline inflation inched down from 4.8% in January to 4.7% in February. At the current level, inflation sits within the Central Bank's target of 5.0% with a 1.0 percentage point tolerance margin.
Meanwhile, at its 28 February meeting, the Central Bank left the monetary policy rate unchanged at 5.00%, following a similar decision in January. FocusEconomics Consensus Forecast participants expect inflation to end the year at 5.5%, which is up 0.1 percentage points over last month's projection. For 2014, panellists anticipate that inflation will moderate to 4.7% by year-end.
Author: Armando Ciccarelli, Head of Data Solutions