The average cost of the national family basket in the Dominican Republic will finish this year over 2,250 pesos plus expensive than when 2022 began, and the families with the lowest income are the ones that would conclude with the highest percentage increase.
For Januarywhen the then new 2022 was promoted as a year of economic recovery in the midst of the pandemic crisis, the national average cost of family basket rose 473.76 pesos compared to December of the old 2021.
The family basket includes various items ranging from food, clothing, medicines, medical consultations, transportation, household appliances and education, among others.
When February arrived and the 24th of that month began the Russian invasion of UkraineAfter months of tensions, the panorama of economic recovery began to be uncertain due to the projected impact of said war conflict on the food prices and of the raw Materialsand that of the same economic crisis that was already caused by the COVID-19 pandemic.
From a peak to descend
For april of 2022, there was a 9.64% peak on the YoY inflation in the Dominican Republic, as reported by the Central Bank, this is due to the acceleration of the inflationary dynamics (generalized increase in prices).
For that month, the groups Food and Non-Alcoholic Beverages, Housing, Restaurants and Hotels, Miscellaneous Goods and Services, and Transportation, were the ones that contributed the most to the inflationexplaining together about the 94% inflation general of April 2022.
There was hikes in the chicken fresh (2.32%), chillies (15.91%), avocados (13.93%), oranges (10.20%), tomatoes (5.21%), green pigeon peas (4.09%), sour lemons (6.58%), tickets abroad (8.87%), drinking water services (13.58%) and other items .
For November, the YoY inflation already showed a downward trend, being located in 7.58%. The group that contributed the most to the inflation in that month it was Food and Non-Alcoholic Beverages by varying 0.92%, explaining approximately half of the inflation General at the time
In november there was hikes in the green bananas (10.85%), ripe bananas (12.32%), potatoes (8.98%), chicken broth (3.57%), garlic (9.05%), green bananas (3.36%), tomatoes (8.11%), fresh chicken (0.38%) and avocados (5.89%) .
The poorest with the most increase
economy class with less purchasing power or from the so-called income quintile 1, was the one that experienced a higher percentage increase of the cost of your family basket between January and November 2022: 6.21%.
When in January these families covered their basket with 23,969.45 pesosin november had gone up to 25,458 pesosthat is, 1,488.55 more pesos.
The Central Bank projects that 2022 closing with a inflation around the 7.2%being 1.3% less than how it closed in 2021.
The institution also predicts that the inflation converge to target range of 4% ± 1% before finishing the second quarter of 2023 as a result of the combination of monetary policy measures adopted by the bank itself and government subsidies for fuel and electricity rates.
