The Central Bank of the Dominican Republic (BCRD) reported that the country’s annual inflation rate decreased to 3.35% in December 2024, down from 3.57% in December 2023. This marks the lowest annual inflation in six years. The figure remains within the target range of 4.0% ±1.0% established in the monetary program.
Core inflation, which excludes volatile items like food and energy, was reported at 4.01% for December 2024, staying close to the Central Bank’s target. This indicator is considered a more reliable measure of underlying inflationary pressures.
The BCRD highlighted that the Dominican Republic’s inflation rate is among the lowest in Latin America, trailing only behind the dollarized economies of Panama, Ecuador, and El Salvador, as well as Peru and Costa Rica.
Month-over-month, the CPI rose 0.70% in December 2024, primarily driven by increases in food and beverage prices. Products such as plantains, chicken, peppers, onions, coffee, and eggs contributed to this rise.
Other items that experienced price increases included personal care products, event-related services, automobiles, and vehicle repairs. However, government subsidies on domestic fuels helped to mitigate the impact of transportation costs on overall inflation.
A breakdown of inflation by geographic region showed that the Ozama region, which includes Greater Santo Domingo, experienced the highest increase. This was primarily due to higher prices in various goods and services, including transportation and recreation.
The BCRD also reported that inflation rates were highest among lower-income households, driven by increases in food and beverage prices and personal care items.
In summary, the BCRD’s report indicates that the Dominican Republic’s inflation remains well-controlled and is among the lowest in the region. While some price pressures persist, particularly in food and certain services, the overall trend suggests a stable economic environment.
Diario Libre reports that while inflation is down, the prices of basic prices are up.
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Central Bank
Diario Libre
9 January 2025