Dominican Republic: Inflation moderates further in November
December 30, 2011
In November, consumer prices added 0.09% over the previous month. Lower prices for food and non- alcoholic beverages (-0.49% month-on-month) almost completely offset higher prices for transport (+0.51% month-on-month). The November print was virtually in line with the 0.03% rise seen in October, but below the 0.31% increase recorded in November 2010. Accordingly, annual headline inflation slowed from 8.9% in October to 8.6% in November. At the current level, inflation sits above the upper limit of the 5.0%-6.0% target range set by the Central Bank for 2011 for the eleventh consecutive month. Despite persistently high inflation, however, the Central Bank still decided to keep the monetary policy rate unchanged at 6.75% at its 30 December meeting. The Bank has now refrained from raising interest rates for the seventh straight month, after two consecutive hikes in May and June.
Author: Armando Ciccarelli, Head of Data Solutions