The central bank of the Dominican Republic (BCRD) reported today that the consumer price index (CPI) for recent May registered a variation of 0.49% compared to April 2022, the lowest inflation monthly from October 2021.
This, as indicated by the bank in a press release, shows “that the measures taken by the Government and the BCRD to mitigate the rate of price growth have begun to have an effect.”
The institution’s monthly report states that the inflation accumulated in the January-May period stands at 4.29%, while the inflation interannual, measured from May 2021 to May 2022, was 9.47%, lower than the 9.64% registered the previous month, while the inflation underlying showed a monthly variation of 0.50% in May 2022, placing the annualized at 7.29% in the referred month.
The report indicates that, when analyzing the behavior of the general CPI during 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 inflation May general.
“The set of measures implemented by the Government, particularly the domestic fuel subsidy, has been reflected in a moderation of the inflation of the Transport group, which contributed just 0.01 percentage points to the monthly variation of the CPI of 0.49%” in May, the bank said. “It is expected to continue to strengthen in the coming months as long as hydrocarbon prices remain unchanged.”
He added 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%), and pork ( 1.28%).
Also, 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%).
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 May, growing 0.78% fundamentally due to increases in the prices of meals prepared outside the home as a 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, oil, rice, bananas, cassava, bread, sausages, fish, cheese, among others, which directly affect the consumer price of these food services,” the institution said.
Regarding the price index of the Miscellaneous Goods and Services group, it was reported that it varied 0.56% in May, mainly due to price increases in personal care services, such as washing and styling hair (0.68%) and haircuts. of hair for men (0.65%), in personal care items such as toilet paper (1.62%) and bath soap (1.86%).
The IPC 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 price index of the Furniture and Household Items group varied 0.49%, basically due to increases in goods and services for home maintenance such as chlorine (3.38%), detergents (0.73%), fabric softener (1.83%) , soaps (1.76%) and disinfectants (2.66%).
Inflation by geographic area
Regarding the behavior of the CPI by geographic region, the BCRD indicates 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%, 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.
