Dominican Republic: Inflation jumps in December
January 13, 2016
In December, consumer prices rose 0.09% over the previous month, which followed the 0.17% increase observed in November. According to the Central Bank, the increase mainly reflected higher prices for healthcare, while prices for transportation and housing dropped over the previous month.
Inflation jumped from 1.5% in November to 2.3% in December, which marked the highest reading in over a year. Annual average inflation in December was stable at November’s 0.8%. Headline inflation remains below the lower bound of the Central Bank’s tolerance margin of plus/minus 1.0 percentage point around its 4.0% target rate.
At its meeting on 30 December, the Central Bank decided to maintain its monetary policy rate at 5.00%, taking into consideration the inflation outlook as well as the current state of the economy.
Author: Dirina Mançellari, Senior Economist