Dominican Republic: Inflation moderates further
May 9, 2012
In April, consumer prices were virtually flat over the previous month, which was below the 0.15% rise seen in March. Higher prices for communication as well as for alcoholic beverages and tobacco were almost completely offset by lower prices for food and recreation. As a result, annual headline inflation dropped from 4.9% in March to 4.0% in April, which marks the lowest level since October 2009, when the country last experienced deflation. At the current level, inflation sits within the +/- 1.0 percentage point tolerance margin around the Central Bank's target of 5.5% set in the 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 April meeting. The Bank last raised interest rates in June 2011.