The Central Bank reports that the Consumer Price Index (CPI) increased by 3.26% during September when compared to August, mainly due to the high prices of crude oil on the international market, which have been the highest in history. If the impact of increases in the prices of fuel were to be excluded from the monthly inflation figures, the CPI would have increased by only 1.19% during September – something that, according to the Central Bank, proves that the increase in internal prices does not have to do with monetary reasons or other internal factors. Accumulated inflation during the first nine months of this year is at 6.13%, and annual inflation for the past 12 months is 4.22%, significantly lower than the same period last year (47.89%). The transport sector had the highest increase with 9.21%. The education sector increased by 7.0% and food increased by 1.30%. The revised inflation projection for the end of 2005 has been set at around 9.44% assuming there is no other disproportionate increase in the price of oil. Bear Stearns research analyst Franco Uccelli does not rule out that the increase in rates last week may be followed by a tightening of the monetary base. These policies could help ease both devaluation and inflation, but they could also restrict the country’s growth potential. Uccelli believes that restoring monetary stability, rather than fostering growth, should be the DR’s top priority at the moment and favors the Central Bank’s efforts toward that end.