The report indicates that this behavior is consistent with the monetary stance implemented by the Central Bank
Accumulated inflation at the end of last year was 7.83%, behavior that represents a reduction of 181 basis points with respect to the peak of 9.64% registered in April 2022.
And in December 2022, the variation of the consumer price index (CPI) was 0.96% with respect to the month of November of the same year, reported yesterday the central bank.
He explained that year-on-year core inflation has maintained a downward trend since May 2022, going from a maximum of 7.29% in May to 6.56% at the end of December 2022, also being lower than that of the end of 2021, which was 6.87%. The report indicates that this behavior is consistent with the monetary stance implemented by the central bank of the Dominican Republic, which has contributed to mitigating the pressures of internal demand.
Likewise, the BCRD adds that as the monetary policy transmission mechanism continues to operate, the forecasts of this institution show that inflation would converge to the target range of 4% ±1% before the end of the second quarter of 2023.
The report highlights that inflation in 2022 was not of a higher magnitude, mainly due to the successful combination of monetary policy measures adopted by the BCRD together with government subsidies for fuel and electricity rates, as well as the support for agricultural production. In addition, during the second half of 2022, a slowdown is reflected in the prices of commodities, particularly oil and food, and in the costs of container transportation globally.
In December the prices of agricultural products increased due to the rains.
