Dominican Republic: Inflation picks up in July
August 9, 2013
In July, consumer prices jumped 0.62% over the previous month, according to preliminary Central Bank data. The reading came in above the 0.04% increase seen in June and marks the highest rise since the beginning of the year.
As a result of the monthly pick-up, annual headline inflation rose from 4.8% in June to 5.7% in July. Inflation is currently within the tolerance margin of the Central Bank's 5.0% (plus/minus 1.0 percentage point) target.
Meanwhile, at its 31 July meeting, the Central Bank maintained the monetary policy rate at 4.25% for the second consecutive month. The Central Bank sees inflation in line with the Bank's target in the medium term.
FocusEconomics Consensus Forecast participants expect inflation to end the year at 5.3%, which is down 0.3 percentage points over last month's projection. By the end of 2014, panellists expect inflation to moderate to 4.5%.
Author: Armando Ciccarelli, Head of Data Solutions