The Dominican Republic’s Central Bank (BCRD) announced that the country’s Consumer Price Index (CPI) rose by 0.38% in July 2025. This monthly increase contributed to an annual inflation rate of 3.40%, a slight drop from the 3.56% recorded in June.
For the past 27 months, the annual inflation rate has remained within the Central Bank’s target range of 4.0% ± 1.0%, positioning the Dominican Republic among the nations with the lowest inflation in non-dollarized Latin American economies.
The report also highlighted that the core inflation, which excludes volatile items like food, fuel, and regulated prices, was 0.30% in July, bringing the annual core inflation to 4.19%. This figure also falls within the Central Bank’s target range and provides a clearer signal for monetary policy decisions.
The Central Bank says that an analysis of the July CPI found that five groups—Food and Non-Alcoholic Beverages, Housing, Transportation, Restaurants and Hotels, and Miscellaneous Goods and Services—were responsible for approximately 90% of the month’s inflation.
The Food and Non-Alcoholic Beverages category saw a 0.47% increase, driven by rising prices for items such as fresh chicken, cassava, green bananas, bread, and salami. The Central Bank noted that the higher price of fresh chicken, a key item in this group, was due to the combined effects of high temperatures and the rainy season, which seasonally impact poultry productivity. Price decreases in other food items like garlic, avocados, lemons, and onions partially offset these gains.
Housing costs rose by 0.74%, primarily due to increases in the price of cooking gas and housing rentals. Similarly, the Transportation group experienced a 0.24% inflation rate, influenced by price adjustments for vehicle gasoline, diesel, automobiles, and public transportation fares.
The Restaurants and Hotels category had a 0.43% increase, a result of higher prices for prepared food consumed outside the home. Meanwhile, the Miscellaneous Goods and Services group saw a 0.34% rise, driven by increases in personal care products and services.
Regional and socioeconomic variations
Inflation varied across different regions of the country. The North or Cibao region recorded the highest inflation at 0.42%, followed by the East (0.41%), and the South (0.47%). The Ozama region, which includes Santo Domingo, saw the most moderate inflation at 0.31%.
The report also examined inflation by socioeconomic strata, finding that lower-income households were more affected. Quintiles 1, 2, and 3 experienced inflation rates of 0.39%, 0.44%, and 0.43%, respectively. In contrast, the wealthiest households in quintiles 4 and 5 saw more moderate rates of 0.36% and 0.27%. The Central Bank attributed this difference to a lower relative weight of food in the spending baskets of higher-income households, as well as a decrease in airfare prices, which lessened the impact of transportation costs for this group.
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Central Bank
6 August 2025