BCRD reports that the variation of the Consumer Price Index in April 2023 was 0.24%, contributing to the decrease of interannual inflation to 5.15%. The Central Bank expects the target inflation range of 4% ± 1% before the end of the second quarter of this year will be met.
The Central Bank says that the interannual inflation in April 2023 at 5.15 % is the lowest rate verified since October 2020.
The BCRD highlights that the downward pace of inflation evidences the effectiveness of the monetary policy transmission mechanism implemented by the authorities to mitigate domestic demand pressures. Likewise, government subsidies to fuel and electricity rates have contributed to the positive outcome.
The Central Bank reports that the country’s interannual inflation is among the lowest in Latin America, being lower than that of 12 economies in the region. Only five countries report figures lower than the Dominican Republic’s, two of which are dollarized economies.
The Central Bank explains that when analyzing the performance of the general CPI during April 2023, Food and Non-Alcoholic Beverages had the most impact, with a variation of 0.45%, contributing approximately half of the general inflation for the referred month. In addition, the groups Miscellaneous Goods and Services (0.55%), Restaurants and Hotels (0.52%) and Housing (0.31%) also contributed. On the contrary, the Transportation group contributed with a negative variation of 0.28%.
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Central Bank
10 May 2023