Santo Domingo.- The Central Bank of the Dominican Republic (BCRD) reports that the variation of the consumer price index (CPI) was 0.63% in the month of January 2023 compared to December 2022. This places the YoY inflation measured from January 2022 to January 2023 at 7.24%. It means a total of 59 basis points below the 7.83% registered in the month of December 2022.
The Institution explains in its report that core inflation registered a monthly variation of 0.69% in January 2023. Thus, year-on-year core inflation stood at 6.60% in the referred period. This indicator makes it possible to extract clearer signals for conducting monetary policy. This is because it excludes items with great variability in their prices, such as some foods. Also in fuels, services with regulated prices such as electricity rates, transportation and alcoholic beverages and tobacco.
The BCRD indicates that the behavior of inflation is consistent with its monetary stance. Said policy has contributed to mitigate the pressures of internal demand, combined with the Government subsidies for fuels and the electricity tariff. In addition, the prices of the commodities, particularly oil and food. Also the costs of container transport globally. Likewise, as the monetary policy transmission mechanism continues to operate and the conjunctural factors that have affected the volatile component of prices dissipate, mainly the effects of weather events, inflation is expected to converge to its target range of 4%±1% during the year 2023.
CPI variation by groups
The analysis of the results of the general CPI during the month of January 2023 shows that the group with the greatest contribution to inflation was Food and Non-Alcoholic Beverages, registering a variation rate of 1.32%, which explains more than half of the general inflation for the month of January. To a lesser extent, the price indices of the groups Restaurants and Hotels (1.21%), Goods and Miscellaneous Services (0.80%), Housing (0.30%), Transportation (0.16%), Education (0.99%) and Health (0.59%) had an impact. ).
The inflation of the Food and Non-Alcoholic Beverages group was explained by the price increases observed in fresh chicken (4.64%), green plantains (3.26%), eggs (4.52%), green bananas (6.96%), sour lemons (40.08%), %), potatoes (6.01%), pork (1.97%), chicken broth (2.15%), ice cream (10.14%), rice (0.33%), sobado bread (1.16%), ripe plantains (2.70%) , tomato paste (1.54%), cassava (1.13%) and pan de agua (1.16%), while other food goods registered decreases in their prices such as onions (-5.32%), tomatoes (-7.57%) and garlic (-3.12%).
The monthly report of the BCRD highlights that, despite the increase in the prices of some foods with a high weight in the family basket such as plantains, chicken and potatoes, this growth has been less than the previous month, therefore that the variation of the CPI of 1.32% of the referred group in the month of January was lower than the rate of 2.09% registered in December 2022, evidencing a slowdown.
CPI growth of the hotels and restaurants group
The report adds that the CPI of the Restaurants and Hotels group grew 1.21% mainly due to increases in the prices of food services prepared outside the home such as dish of the day (1.04%), food service with accompaniment (1.49%), service chicken (1.14%), empanadas (2.85%) and sandwiches (1.40%). It is important to highlight that the rise in the price index observed for this group is the result of increases in the prices of the basic inputs for its preparation, including meat, oil, rice, plantains, cassava, bread, sausages , fish, cheese, among others, which directly affect the consumer price of these food services.
Regarding the price index of the Miscellaneous Goods and Services group, the report highlights that it increased by 0.80% during the month of January 2023, mainly due to the price increases registered by services and personal care items, which varied 0.84%. and 0.91%, respectively. The growth of 0.30% in the CPI of the Housing group is basically explained by the increases of 0.44% in housing rental services, housing maintenance (0.82%), common expenses in co-ownership (1.30%) and paintings (0.99% ).
CPI in the education group
The price index corresponding to the Education group reflected a variation of 0.99% in January 2023, essentially due to the increase in the prices of university education (2.00%). While the CPI of the Health group varied 0.59%, product of the increases registered in antihypertensives 0.54%, antidiarrheals (7.71%), vitamins (1.57%), analgesics (0.57%), cost of surgery (1.10%) and analysis laboratory (1.86%).
The variation of the CPI of the Transportation group in the month of January 2023 was 0.16%, mainly due to increases in car prices (3.75%). Also vehicle repair services (2.85%) and some ground transportation services such as public car rides (0.52%) and taxis (0.83%). These increases were partially offset by the reduction in the prices of tickets abroad (-25.85%), which occurs seasonally in this season. This means that inflation in this group was not of greater magnitude. In addition, the measures implemented by the Executive Power to subsidize the prices of domestic fuels contributed. These also have a great impact on the behavior of this group by reducing their impact on the variation of the general CPI.
cpi or Inflation of tradable and non-tradable goods
The BCRD explains that the CPI for tradable goods, those that can be exported and imported free of restrictions, varied 0.59% in January 2023 compared to December 2022. Meanwhile, the CPI for non-tradable goods and services, those that Due to their nature, they can only be marketed within the economy that produces them or are subject to measures that limit their imports, grew 0.68% in January 2023.
Inflation by geographic areas
The analysis by geographical regions showed that the variation of the consumer price index of the Ozama region, which includes the National District and the Santo Domingo province, was 0.62%. In the North or Cibao region 0.48%, East region 0.78% and the South region 0.93%. The greater variation registered in the CPI of the South region is mainly explained by the higher incidence of the CPI of the Food and Non-Alcoholic Beverages group. While the lower variation rate observed in the CPI of the Cibao region is due to the negative variation of the Transportation group in this area.
Inflation by quintiles
The report by socioeconomic strata shows that the lowest income quintiles, that is, 1, 2 and 3, registered variations of 0.71%, 0.67% and 0.69%, respectively, due to increases in the Food and Beverage group price index. Non alcoholic. Regarding the highest income quintiles (4 and 5), they registered inflation rates of 0.71% and 0.38%, respectively. In the quintile 4 index, the growth in food prices and the rise in car prices had an impact, while in the result of the quintile 5 index, the increase in the Food and Non-Alcoholic Beverages CPI group was partially offset. due to the negative variations in the communications group index and the decreases in the prices of air tickets.
