Leonel Fernández says rising basic-basket costs are eroding Dominican families’ purchasing power

Leonel Fernández says the price of the Dominican Republic’s basic consumer basket has nearly doubled since 2020, leaving families and businesses under growing pressure.

The former president and leader of the People’s Force said the basket increased from RD$28,000 in 2020 to RD$49,000 currently. Wages, he said, have not risen at the same pace.

“In 2020, the cost of the basic consumer basket was 28,000 pesos. Today it is 49,000 pesos. It has practically doubled, while salaries are below that. It is a big difference,” Fernández said.

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In 2020, the cost of the basic consumer basket was 28,000 pesos. Today it is 49,000 pesos. It has practically doubled, while salaries are below that. It is a big difference.

He linked the higher cost of essential goods and services to weaker household spending. When families devote more income to basic needs, he said, they have less money for other purchases. That reduction in spending is hurting shops, some of which he said have lost customers, closed or entered bankruptcy.

“I notice that there is concern at this moment, because businesses are already starting to close or go bankrupt, and that is because they are losing customers as purchasing power has declined,” Fernández said. He also said families were struggling to afford fundamental food needs and maintain a balanced diet.

Fernández made the remarks during a conversation with entrepreneurs and merchants at the 30th Expo Mayorista in San Francisco de Macorís. He toured the fair’s booths before joining a public forum organized by the Association of Merchants of Duarte Province.

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I notice that there is concern at this moment, because businesses are already starting to close or go bankrupt, and that is because they are losing customers as purchasing power has declined.