The numbers indicate that food and beverages experienced a deceleration in their prices, gaining only 0.90% during the month which is nearly one third of the July rate of 2.52%. According to the Central Bank, the modest increase for this group of items – one that has a major influence on a family’s expenditures – means that the monthly inflation rate for the goods and services included in the basic family shopping cart is at its lowest since April 2003 when it stood at just 0.29%. This latest Central Bank report, released just yesterday, places the yearly inflation rate at 32.61%. The report attributes the lower inflation for August to a series of events that included a strengthening of the peso, which dropped nearly 1,000 points or RD$10. Over the past 12 months the inflation rate is pegged at 51.84%, representing a slight decrease form the 12 month figure for July that was over 55%. Hotel, bar and restaurant services were a major contributor to the inflation rate, with general increases of 6.61% overall. For the highest 20% of family incomes, the result was a 0.60% decrease in the inflation rate and for the lowest 20% of family incomes a 1% increase in their cost of living. In Santo Domingo, the inflation rate was reported to be just 0.20% and in the rest of the country it was 0.58%. The rural areas were the least benefited by the numbers, experiencing an inflation rate of 0.83%.
Other factors that influenced the new calculations were the lower costs of transportation through lower gasoline prices, airfares and cars.