Macroeconomic Forecast Dominican Republic

May 2007 | Macroeconomic Forecasts

Headline inflation has slowly but surely started to creep up since the turn of the year, coming in at a seven-month high of 5.54% y-o-y in March. The key driver of inflation was transport prices, surging by 2.77% m-o-m (up from 1.17% in the previous month). As such, we believe that mounting inflationary pressures in Q107 highlight the country's susceptibility to fluctuating energy prices: the price of Brent crude has risen from US$51.00/bbl to US$66.25/bbl during the same time frame. Having said that, inflation is still historically low and we are confident that expectations will remain well-anchored despite the recent

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