According to the Central Bank, inflation for June was 0.06%. The accumulated rate for the first six months of the year was 1.02% and the yearly rate from June 2016 to June 2017 is 2,55% which is below the target limit set by the Monetary Program.
The report states that the highest levels of inflation came from the Diverse Goods and Services Group (0.29%), due to increases in personal services such as barbers (0.63%) and women’s hairdressers (0.48%). Prices for food prepared outside of the home, e.g. restaurants and hotels rose between 0.17 and 0.18%. Daily “Blue Plate Specials” at restaurants only rose 0.13%, while pizza prices jumped 1.14%. The price of a fried chicken meal bumped up 0.16%.
The next highest group was Recreation and Culture (0.31%), mainly due to an increase of 0.8% in cable television, and tour prices for tourists (1.23%). This was followed by the Transport Group (0.02%), due to a decrease in fuel prices but an increase in airline tickets (8.9%) and motorcycle taxi prices (0.57%).
The decreases in inflation came from the Food and Non Alcoholic Beverage Group (-0.01%) due to decreases in the prices of limes, eggs, avocados, plantains, sweet potatoes, seasonal fruits, pumpkin, pineapple, sour oranges, onions and cassava that compensated for the increase in prices of chicken, garlic, peppers, salami, oranges, purified water and pigeon peas.
Concurrently with the Central Bank announcement of almost inexistent inflation, on Tuesday, 11 July 2017, an editorial in El Día newspaper says reports that a different story is true for most Dominicans. The editorialist writes:
“Inflation exists. An authorized body such as the Central Bank of the Dominican Republic does not have to say so. This economic phenomenon is felt every day in Dominican households in the increases in prices.” The writer says that the prices of goods for everyday living continue to increase, and some of these have become luxury items, while others are just purchased in less quantity. The editorialist mentions meat, milk, cod fish, butter, pork, imported oats, pastas, medicines.
Read more in Spanish:
Banco Central
El Dia
12 July 2017
