The Central Bank of the Dominican Republic (BCRD) reported that the country’s annual inflation rate decreased to 3.16% in October 2024, down from 3.29% in September. This latest figure marks 11 consecutive months within the Central Bank’s target range of 4.0% ± 1.0%.
The BCRD attributed the slowdown to a deceleration in monthly inflation over the past three months, culminating in a rate of 0.09% in October. This was primarily driven by a decrease in the growth rate of prices for staple food items.
The Central Bank highlights that the Dominican Republic’s inflation rate is among the lowest in Latin America, surpassed only by dollarized economies and a few other countries like Peru and Costa Rica.
Core inflation, which excludes more volatile items like food and energy, also eased to 3.96% in October, remaining below the Central Bank’s target.
Breaking down the numbers:
• Food and non-alcoholic beverages: Prices in this category fell by 0.33%, contributing significantly to the overall decrease in inflation.
• Transportation: This category saw a 0.34% increase, mainly due to higher costs for airfares, vehicles, and tires.
• Alcoholic beverages and tobacco: Prices in this category rose by 1.61%, driven by increases in the cost of bottled beer.
• Restaurants and hotels: This category experienced a 0.33% increase, primarily due to higher prices for prepared meals.
Inflation rates varied across different regions of the country. The Ozama region, which includes the capital city of Santo Domingo, saw the highest increase, while the northern, eastern, and southern regions experienced more modest inflation.
The BCRD reported that inflation rates varied across different socioeconomic groups. Lower-income households experienced a slight deflation, while higher-income households saw a slightly higher inflation rate.
Read more in Spanish:
Central Bank
7 November 2024