The Central Bank (BCRD) reports accumulated inflation for the year is at 7.71%. The Monthly Price Index (CPI) variation was 1.08% in November 2021. The Central Bank says that in terms of the past 12 months (November 2020 to November 2021) inflation is 8.23%.
The BCRD report states that the results of the general CPI during the month of November 2021 show that the groups with the highest contribution to inflation were Transportation (2.38%), Food and Non-Alcoholic Beverages (1.01%) and Housing (1.66%), together explaining 82% of inflation during this period. To a lesser extent, the Miscellaneous Goods and Services (0.55%) and Restaurants and Hotels (0.58 %) contributed.
It is noteworthy that the variation of 2.38% of the index of the Transportation group, the one with the highest incidence of the CPI for November 2021, basically responds to the price increases of airline tickets (46.24%), regular gasoline (2.65%) and premium gasoline (2.51%), liquefied gas (LPG) for vehicles (3.23%) and diesel (2.98%), due to the weekly adjustments made by the Ministry of Industry & Commerce (MICM), in compliance with Law 112-00 on Hydrocarbons. In addition, the increase in land transportation services by motorcycle (2.77%), public transport (1.17%), vehicle repair services (2.55%), automobiles (0.19%) and tires (1.52%) also contributed to the increase.
Domestic prices are impacted by the situation of international trade markets, where bottlenecks in supply chains, combined with substantial increases in container and global freight rates. Other external factors have also played a role, such as the increase in the prices of foodstuffs, oil and other raw materials, all of this in a context in which world demand has recovered faster than global supply, generating a gap that has exacerbated inflationary pressures in most economies.
The BCRD points out that countries such as the United States and countries in the Euro Zone (EZ) have registered inter-annual inflation in recent months, which in some cases represent historical highs. Particularly, the US economy evidenced an annualized inflation of 6.8% in November 2021, the highest since 1982, which practically triples the average threshold of 2% established as target, while that of the EZ stands at 4.9% in November 2021, the highest in the history of this block of countries.
The BCRD says in the case of the Dominican Republic, the economy is expected to close with growth at around 11%, substantial improvements in the labor market, and moderation of the inflation rate in the second half of 2022.
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Central Bank
15 December 2021