The Central Bank of the Dominican Republic presented the products that registered price increase in May 2022although he specified that the inflation in that month it has been the lowest since last October: 0.49%. This shows, according to said entity, that the measures taken by the Government “have begun to have effects.”
The report indicates that when analyzing the behavior of the Consumer’s price index (IPC) general during the month of May 2022, it is observed that the groups with the highest incidence in the growth of the price index were Food and Non-Alcoholic Beverages (0.96%), Restaurants and Hotels (0.78%), Miscellaneous Goods and Services (0.56%), Housing (0.42%), Alcoholic Beverages and Tobacco (1.04%) and Furniture and Household Items (0.49%), together explaining 95% of the general inflation for the month of May 2022.
It is highlighted that the set of measures implemented by the Government, particularly the domestic fuel subsidy, has been reflected in a moderation of inflation in the Transport group, which contributed barely 0.01 percentage points to the monthly variation of the CPI of 0.49% in the month of May. It is expected to continue strengthening in the coming months as long as hydrocarbon prices remain unchanged.
It adds that the variation of 0.96% in the price index of the Food and Non-Alcoholic Beverages group is fundamentally due to the price increases observed in cassava (11.15%), fresh chicken (1.22%), avocados (14.52%), soybeans (2.45%), onions (5.66%), green bananas (1.85%), purified water (1.21%), rice (0.56%), tomatoes (6.21%), beef (1.19%), pork ( 1.28%), pinto beans (2.05%), oranges (8.11%), salami (0.72%), green bananas (1.71%), while other food goods registered decreases in their prices such as sour lemons (-13.80%), eggs (-1.88%), green pigeon peas (-3.87%), potatoes (-2.55%) and carrots (-7.34%).
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With respect to the Restaurants and Hotels group, the BCRD indicates that this was the second in contribution in the variation of the general CPI for the month of May 2022, growing 0.78% fundamentally due to increases in the prices of food services prepared outside the home such as dish of the day (0.92%), chicken service (1.09%) and food service with accompaniment (0.32%). It is important to reiterate that the increase in the price index observed in this group is the result of increases in the prices of basic inputs for its preparation, including meat, oils, rice, bananas, cassava, bread, sausages. , fish, cheese, among others, which directly affect the consumer price of these food services.
As for the index of prices of the Miscellaneous Goods and Services group, it varied 0.56% in May 2022, mainly due to price increases in personal care services, such as washing and styling hair (0.68%) and men’s haircuts (0.65 %), in personal care items such as toilet paper (1.62%) and bath soap (1.86%).
The CPI of the Housing group grew 0.42%, as a result of price increases in housing rental services (0.34%), paints (4.30%) and drinking water service (4.75%). While the growth of the price index of the Alcoholic Beverages and Tobacco group was 1.04%, due to the 0.89% increase in the price of packaged beer. In addition, the increases verified in the prices of aged rums (1.89%), white (1.90%) and gold (1.52%) and malt (1.50%) contributed.
The group price index Furniture and Household Items varied 0.49%, basically due to increases in goods and services for home conservation such as chlorine (3.38%), detergents (0.73%), fabric softener (1.83%), soaps (1.76%) and disinfectants (2.66%) .
Inflation of tradable and non-tradable goods
The BCRD report indicates that the variation of 0.55% of tradable goods, those that can be exported and imported free of restrictions, is explained by the increases in the prices of some food goods such as cassava, avocados, soybean oil, green bananas, purified water, tomatoes, beef , pork, oranges, salami, green bananas, alcoholic beverages and in the prices of paints, antihypertensives, toilet paper, chlorine, bath soap and detergents.
While the index of goods and services Non-tradable goods, which by their nature can only be marketed within the economy that produces them or are subject to measures that limit their imports, varied 0.44% in May 2022, mainly due to the price increases registered in services of housing rental, drinking water, meals prepared outside the home, such as daily dish, chicken service, garnish food service, university education, vehicle repair service, personal care services such as washing and styling hair, cutting hair for men and in some foods such as fresh chicken, rice, pinto beans, onions and milk.
Inflation by geographic area
Regarding the behavior of the CPI by geographic region, the BCRD points out that the variation of the consumer price index of the Ozama region, which includes the National District and the Santo Domingo province, was 0.36%, in the North or Cibao region 0.59%, the East region 0.56% and the South region 0.65%. The lower variation registered in the CPI of the Ozama region is mainly explained by the lower incidence of the CPI of the Food and Non-Alcoholic Beverages group in that geographical area.
Inflation by quintiles
The report of the monetary entity explains that the behavior of the CPI by socioeconomic strata shows that the quintiles with the lowest incomes registered variations of 0.69% in quintile 1 and 0.58% in quintiles 2 and 3, respectively, with an impact on this behavior of the price increases of the group. Food and Non-Alcoholic Beverages and the drinking water service in the Housing group. As for the quintiles with the highest income (4 and 5), they registered inflation rates of 0.50% and 0.36%, respectively, as a result of the growth in the prices of some food goods and housing rental services.
