President Luis Abinader and Vice President Raquel Peña convened a mega meeting at the Presidential Palace to discuss the issue of rising prices and the impact on all. Groups were designated to continue the talks and a commitment among all was signed to find joint solutions. President Abinader named the ministers of Industry & Commerce (Victor Bisonó, Economy (Miguel Ceara Hatton) and Agriculture (Limber Cruz) to coordinate the continuing talks. The groups need to come up with recommendations to present at a follow up meeting in 10 days.
The meeting was a who’s who with representatives of public and private sectors. The groups agreed to present the first recommendations in ten days. Manufacturing, business associations, labor, civic society, church groups sent their top executives to meet with the top government officials. Also present were the editors of leading publications.
During the meeting, President Abinader said the government would continue to subsidize some products to curb inflation. The Central Bank has revealed that the inflation rate between May 2020 and May 2021 had hit 10.48%.
“The government has to continue subsidizing to avoid triggering an inflationary effect,” said Abinader.
Economy Minister Miguel Ceara Hatton explained that the main factors behind the rising inflation are:
Increases in the prices of the main raw materials (commodities).
Adverse factors that have resulted in a major increase in freight transportation.
In general, the price movement reflects the increase in world aggregate demand and is a short-term phenomenon until inventories are replenished.
There are no structural domestic policy factors that are causing inflation, other than those inherent to the recovery.
Speaking at the event, Central Bank Governor Héctor Valdez Albizu said that the current crisis is imported, so he expects it will not last for long.
22 June 2021