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Dominican Republic Inflation Eases to 5.47% in July
Consumer price growth in the Dominican Republic continued to slow in July, with annual inflation declining to 5.47% as lower fuel prices helped ease transportation costs, according to the country's Central Bank.
The Central Bank of the Dominican Republic (BCRD) reported that annual inflation fell to 5.47% in July, down from 5.67% recorded in June, signaling continued progress toward the institution’s inflation target of 4.0% ± 1.0%.
On a monthly basis, the country’s Consumer Price Index (CPI) increased by 0.19% in July, reflecting a slower pace of price growth than the average recorded during the first half of the year. The latest figures suggest that inflationary pressures have continued to moderate after several months of higher price increases.
Lower Fuel Prices Drove the Slowdown
The Central Bank said the main factor behind July’s lower inflation was a 0.14% decline in the transportation category. The decrease was largely attributed to recent reductions in the prices of gasoline, diesel and liquefied petroleum gas (LPG), which helped offset price increases in other areas of the economy.
Transportation costs play an important role in overall inflation because fuel prices influence the cost of moving goods and people across the country. Lower energy costs can therefore help ease broader price pressures for consumers and businesses.
Core Inflation Remains Within Target Range
The Bank also reported that core inflation, which excludes products and services with highly volatile prices, increased by 0.30% during July. On an annual basis, core inflation stood at 4.96%, remaining within the Central Bank’s target range.
Core inflation is closely monitored because it provides a clearer picture of underlying price trends by excluding items such as certain food products, fuels, regulated tariffs, transportation, alcoholic beverages and tobacco, whose prices can fluctuate significantly over short periods.
According to the Central Bank, the latest inflation data indicate that consumer price growth continues to move gradually toward the institution’s long-term objective of maintaining price stability, an important factor for households, businesses and investors operating in the Dominican Republic.
