Macroeconomic Forecast Dominican Republic

BMI View: After peaking at 10.2% y-o-y in August 2011, consumer price inflation in DomRep trended down somewhat, coming in at 8.9% y-o-y in October. As recent inflationary pressures were mainly due to high fuel prices, we expect this downtrend to continue into 2012, in line with our Oil & Gas team's forecast for a moderation of oil prices in Brent crude prices, which they expect to average US$102/bbl in 2012. We believe the effect of more moderate energy prices is already easing transportation prices, which declined by 1.0% month-on-month in October.

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