2006News

2005 inflation rate at 7.4%

The government is proud of its efforts to lower the inflation rate, and justly so, according to the latest report from the Central Bank. According to the report, the government’s fiscal policies have succeeded in achieving a 7.4% year-end inflation for 2005, well below the 28.7% for 2004 and within the IMF guidelines. The Central Bank attributed the decrease to the government’s “prudent” monetary policies. The IMF has asked the Dominican Republic to achieve a yearly inflation rate of between 6% and 8%, but, above all, it was to achieve at least single digit inflation. The Central Bank said that if the inflationary effects of fuel prices, including propane and transportation costs, were to be excluded, the inflation rate would be just 2.7% for the year 2005.