Rise in Inflation Rates: Dominican Republic Experiences 3.71% Yearly Increase in August
The Central Bank of the Dominican Republic has reported the August Consumer Price Index (CPI), revealing a year-on-year increase of 3.71%. This rise is slightly higher compared to the 3.4% recorded in July, indicating a gradual upward trend in general inflation.
One of the main contributors to this increase was the division of food and non-alcoholic beverages, which saw a 1.24% rise. The price increases in fresh chicken, cassava, plantains, and pineapple played a significant role in this upward movement. High temperatures and the rainy season of the year continue to seasonally impact fresh chicken prices in the Dominican Republic.
The group of restaurants and hotels also experienced a 0.57% price increase. This rise is attributed to rises in the prices of prepared foods outside the home. The transportation sector in the Dominican Republic increased by 0.81%, primarily due to rises in automobiles.
Interestingly, the education sector in the Dominican Republic saw a more substantial increase of 2.18%. This rise is due to higher tuition fees in private schools for primary, secondary, and preschool education. The price increases in this sector are also seasonal, responding to the school enrollment process.
Despite these increases, the underlying inflation rate in August remained within the 4% target set by the Central Bank. This rate was 4.32%, a slight increase from the 4.16% recorded in July. It's important to note that the Central Bank maintained interest rates at 5.75% for the seventh consecutive time in its last monetary policy meeting.
Unrelated to the domestic economy, international news includes Lavrov's statement that accusations against Russia for problems with Von der Leyen's plane "make no sense". Additionally, Peru's Congress is seeking to declare Sheinbaum a 'persona non grata', and a son of a high-ranking Hamas official died in an Israeli attack in Doha (Qatar).
Regrettably, there is no information available about the month in which the inflation rate for educational institutions in the Dominican Republic was highest this year. Nonetheless, the overall trend suggests a gradual increase in inflation rates across various sectors, with food, transportation, and education being the most affected.
