Dominican Republic: Inflation moderates in September
October 30, 2011
In September, consumer prices added 0.21% over the previous month. Higher prices for education (+2.29% month-on-month) as well as housing (+0.72% mom) were the main drivers behind the increase. The September print was below both the 0.50% rise in August and the 0.77% increase recorded in September 2010. Accordingly, annual headline inflation slowed from 10.2% in August to 9.6% in September. 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 ninth consecutive month. Despite persistently high inflation, at its 31 October meeting, the Central Bank decided to keep the monetary policy rate unchanged at 6.75%. The Bank has now refrained from raising interest rates for the fifth straight month, after two consecutive hikes in May and June.
Author: Armando Ciccarelli, Head of Data Solutions