Macroeconomic Forecast Dominican Republic

February 2008 | Macroeconomic Forecasts

Headline inflation in the Dominican Republic edged higher in December, bringing the end-year figure to 8.9% y-o-y, as food prices and energy costs translated into higher consumer prices. Indeed, prices of food, non-alcoholic beverages and tobacco expanded by 8.8% y-o-y in December, up from 5.1% y-o-y in November and 5.8% during the same period a year earlier. The most remarkable upward trend, however, has been in transportation costs, with prices rising by an impressive 18.0% y-o-y, slightly down from a high of 19.2% y-o-y in November, and well above the 3.0% y-o-y increase in December 2006. We currently forecast inflation to average 7.4% y-o-y in 2008, and slow to 6.0% by year-end.

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