Inflation under control

The Central Bank (BCRD) has reported that the Consumer Price Index (CPI) rose by 0.48% in June 2024, following two months of negative inflation in April and May. The Central Bank explains that this brings the year-on-year inflation rate, measured from June 2023 to June 2024, to 3.46%, marking the seventh consecutive month that inflation has remained below the target range of 4.0% ± 1.0%.

The BCRD highlights that the Dominican Republic continues to have one of the lowest inflation rates in Latin America, excluding dollarized economies (Panama, Ecuador, and El Salvador), with a year-on-year inflation rate of 3.46% in June 2024.

The Central Bank detailed sectoral inflation:
• The Food and Non-Alcoholic Beverages group had the highest contribution to inflation in June, rising by 0.75%.
• The Transportation group recorded a 0.61% inflation rate, mainly due to increases in airfares, motorcycle fares, and car prices.
• The Goods and Diverse Services index rose by 0.63%, driven by price increases in personal care services and items.
• The Restaurants and Hotels group recorded a 0.49% increase, primarily due to higher prices for prepared meals outside the home.
• The Furniture and Household Goods group inflation was 0.47%, with the price of domestic services increasing.
• The Health group inflation was 0.43% due to rising prices for antihypertensive drugs.

The Central Bank says that the Dominican Republic’s inflation remains well-controlled, staying below the target range for the seventh consecutive month. The government subsidizes the prices of domestic fuels, which has helped to mitigate the impact of rising prices on household budgets.

The BCRD expects inflation to continue to fluctuate throughout 2024 but remain within the target range, settling at 4.2% by year-end.

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Central Bank

9 July 2024