Dominican Republic sees annual inflation drop to 5.47% in July

The Dominican Republic's annual inflation rate continued its downward trend in July, registering 5.47%. This marks a decrease from the 5.67% recorded in June, signaling the beginning of a convergence toward the Central Bank's target range of 4.0% plus or minus 1.0%.

The consumer price index saw a monthly variation of 0.19% in July, a slower pace compared to the average observed in the first half of the year. The Central Bank attributed this deceleration primarily to a 0.14% drop in the transport sector, driven by recent reductions in fuel prices, including gasoline, diesel, and liquefied petroleum gas (LPG).

Core inflation, which excludes volatile items like certain foods and fuels, also showed a moderated monthly increase of 0.30% in July. The year-on-year core inflation rate stood at 4.96%, remaining within the monetary authority's target range. The Central Bank emphasizes that core inflation provides a more precise measure of price trends by excluding highly volatile goods and services.