Dominican Republic: Inflation slows to lowest level in more than a year
March 15, 2012
In February, consumer prices added 0.35% over the previous month, which was below the 0.44% rise seen in January. Owing to the subdued monthly rise, annual headline inflation slowed from 6.9% in January to 6.0% in February, which marks the lowest level since November 2010. At the current level, inflation sits within the 4.5%-6.5% inflation target set by the Central Bank in its 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 29 February meeting. The Bank has now refrained from raising interest rates for nine straight months, after two consecutive hikes in May and June 2011.
Author: Armando Ciccarelli, Head of Data Solutions