Inflation was slightly down in January. The Central Bank Consumer Price Index stated that inflation over the past 12 months is now at 18.79%. Inflation for 2004 ended at 28.74% (December 2004). Inflation in January 2005 was 0.79%, compared to 9.23% in January 2004. Bear Stearns analyst Franco Uccelli comments that the continuing downward trend in consumer prices that was started nine months ago remains on track. He attributes the subdued inflationary pressures to the stable currency and well-managed monetary policy anchored by a stable monetary base. Furthermore, he writes in his 10 February update, that January’s number shows a “mean-reversion” in the inflation process, after a period of deflation in the September-December 2004 period. He forecasts the DR “will easily outperform its 11%-13% IMF inflation target for this year. Bottom line: Good monetary news continues to flow out of Dominican Republic.”