The Dominican Republic’s Consumer Price Index (CPI) increased by 0.51% in June 2026, bringing annual inflation to 5.67%, according to the Central Bank of the Dominican Republic (BCRD). The year-over-year rate now exceeds the upper limit of the central bank’s inflation target range of 4.0% ± 1.0%, reflecting continued pressure on consumer prices.
The central bank reported that nearly 90% of June’s monthly inflation was driven by four spending categories: transportation, food and non-alcoholic beverages, miscellaneous goods and services, and restaurants and hotels. Rising fuel prices and higher food costs were among the main contributors to the increase.
Fuel and Food Prices Lead the Increase
According to the BCRD, higher gasoline and diesel prices played a significant role in June’s inflation figures. The price of chicken, one of the most heavily weighted products in the country’s consumer basket, also increased, adding to the cost of essential household purchases.
Consumers also paid more for personal care services, including haircuts and salon treatments, as well as prepared meals purchased outside the home. In addition, prices rose for selected household cleaning products, residential rents, and home maintenance services.
Annual Inflation Reflects Higher Cost of Living
An annual inflation rate of 5.67% means that, on average, the basket of goods and services purchased by Dominican households costs 5.67% more than it did a year earlier. As prices rise faster, consumers can purchase fewer goods and services with the same income, reducing purchasing power unless wages increase at a similar pace.
Although the monthly increase in June was relatively moderate, the cumulative rise over the past 12 months illustrates a sustained increase in living costs that continues to affect household finances across the country.
Core Inflation Remains Within the Target Range
While headline inflation exceeded the central bank’s target, the BCRD noted that core inflation, which excludes highly volatile items such as fuels and certain food products, reached 4.96% year over year. That measure remains within the official target range and is closely monitored by policymakers when evaluating underlying price trends and monetary policy decisions.
The central bank uses core inflation to distinguish temporary price fluctuations from longer-term inflationary pressures, making it a key indicator for future economic policy.
Households Continue to Feel the Pressure
Higher prices are affecting several areas of household spending. More expensive chicken and other staple foods have increased grocery bills, while rising fuel costs continue to influence transportation expenses for both private motorists and public transport users.
Housing costs also edged higher, with modest increases in rents and maintenance services adding to monthly expenses. At the same time, eating at restaurants has become more expensive, and consumers are paying more for selected personal care services and hygiene products.
If wages fail to keep pace with inflation, households may need to adjust spending habits by reducing discretionary purchases, choosing lower-cost alternatives, or limiting overall consumption. Inflation data remain one of the country’s most closely watched economic indicators because they measure changes in the cost of living faced by Dominican families.