Dominican Republic: Inflation picks up in March
April 10, 2013
In March, consumer prices rose 0.38% over the previous month, which was up from the 0.33% increase seen in February. Higher prices for transportation, food and non-alcoholic beverages as well as for furniture and furnishing were the main drivers behind the monthly rise.
As a result of the monthly increase, annual headline inflation stepped up from 4.7% in February to 5.0% in March, recording its highest level since February 2012. 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 March meeting, the Central Bank left the monetary policy rate unchanged at 5.00%, following a similar decision in February.
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